Friday, January 23, 2009

SPC - Likely more near-term upside


- SPC is likely to experience more near-term upside, following a positive retest of the key support provided by the 3-month uptrend line and 50-day moving average.

- The stock had not only formed a bullish engulfing candlestick but the subsequent confirmation saw SPC break above the centre line of the Bollinger Band.

- Besides the positive crossover of the Stochastic indicator just above the oversold region, the OBV indicator continues to remain bullish.

- We peg the immediate resistance at $2.52 (23.6% Fibonacci retracement and also near the upper Bollinger Band) ahead of $2.99 (38.2% Fibonacci retracement).

- We see immediate support around S$2.10 - 2.20, ahead of the Oct’ 08’s low of $1.76.

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