Tuesday, April 28, 2009

Gen Int likely to pullback


Gen Int=$0.60 (likely to pullback towards yellowline at $0.535)

- Following the formation of a bearish evening doji star pattern just shy of a key resistance level (Jun ’08 peak), Genting is likely to face more downward pressure, as that could spell a possible end to its current rally.

- As the technical indicators have also displayed bearish divergences to the price over the past month, coupled with the RSI’s fall from the overbought region and the MACD cutting down high in the bullish region, they reinforce our view that the recent rally may have come to an end.

- Any downside from here is likely to find initial support at $0.55 (resistance-turned support level), ahead of $0.49 (resistance-turned support level in Mar ’09)

- On the other hand, any upside from here will likely meet immediate resistance at S$0.64 (2009 high), followed by S$0.73 (minor peaks in Oct & Nov ‘07).

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