First Resources (technical)

First Resources: remains in a longer term down trend, evidenced by the successive lower peaks since Sep '12. While term momentum looks slightly positive, given the rising indicators, note that we are in a higher voatility environment, hence we caution against being overly bullish unless the stock breaks above the key resistance at $1.95 (May peak and 200 day MA). A close below $1.775 (uncovered gap on 14 May) could portend further downside toward the next support at $1.65. Investors who are more risk adverse may choose to avoid the stock for now.