Tuesday, June 16, 2009

SPH - Violation of key support suggests further downside in the near term


SPH could see more downside pressure in the days ahead following the breach of the lower boundary of the 3-month uptrend channel and the key resistance-turned-support level of $3.10 in the last trading session.

With the RSI displaying a bearish divergence to the price action over the last 2 months and the MACD breaking under its 3-month uptrend line yesterday, they seem to echo our views that the uptrend momentum is waning and a further correction is likely.

We expect the stock to find initial support at $2.82 (the next key resistance-turned support level), breaking which, the next support is likely at $2.62 (minor troughs in Jan and Feb ‘09)

Immediate resistance is pegged at $3.10 (key support-turned-resistance level), ahead of $3.29 (Jan ’08 and Jun ’09 peaks).

Sponsored Links

Related Posts by Categories



No comments: