Recent sharp run-up (36% since S$6.42 low) is likely due for a correction.
Although the daily MACD indicator is still very bullish, the daily RSI and stochastic indicators both show the stock as overbought ? stochastic has just cut down inside the overbought region as well.
The stock has also breached the upper Bollinger Band ? typically does not stay above that band for more than three days..
Initial support is likely at S$8.41 (50% Fibonacci retracement resistance-turned-support of the three-month long tumble).
The key support remains at $7.94, which is the 38.2% retracement, and also the resistance-turned-support line provided by the downtrend since July 2008.
This level may also be protected by another intermediate support at S$8.02 (50-day MA).
Most important resistance is at S$8.88 (61.8% retracement), ahead of S$9.22-$9.43 gap.
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