SIA Engineering - Likely correction in the near-term

With the formation of a dark cloud cover (bearish) pattern just under its 6-month downtrend line and upper Bollinger band, SIA Engineering could befacing more correction pressure in the near term.

Technical indicators (Force Index, RSI and MACD histogram), which haveindicated bearish divergences to the price action, support our view that themomentum of the current rally is waning.

Should the reversal takes place, we expect the counter to find relativelystrong support at $1.80 (resistance-turned support level), followed by $1.73(minor gap in Mar ’09).

On the other hand, any upside from here will likely meet immediateresistance at around $1.99 (6-month downtrend line and minor peak inearly Apr ‘09), followed by $2.27 (Dec ’08 high).

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