Tuesday, May 26, 2009

Celestial Nutrifoods - Bearish shooting star pattern suggests more near term downside


- Celestial Nutrifoods is likely to face further correction pressure in the nearterm following the formation of a bearish shooting star pattern just underthe 1-year downtrend line and key support-turned-resistance level.

- With the RSI and Stochastic indicators on the verge of falling out of theoverbought region, coupled with bearish divergence signals generated withreference to the price action over the last month, this seems to suggestthat there could be more room for correction in the days ahead.

- We expect the correction to find an initial support at $0.195 (resistance-turned-support level), failing which, we see the next support at $0.165 (2-month uptrend support line)

- Immediate resistance is pegged at $0.275 (key support-turned-resistancelevel), ahead of $0.345 (support-turned-resistance level).

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