Wednesday, August 19, 2009

Ho Bee - Positive breakout from flag pattern

Likely more upside ahead. Ho Bee could be poised for more upside in the days ahead after breaking out from a flag consolidation pattern and the key $1.10 support-turned-resistance level on high volume yesterday.

Positive signs from indicators. With the RSI rebounding off its 2.5-month uptrend line and the MACD indicator looking to initiate a bullish crossover soon, they support our view that the upside momentum is returning.

Initial resistance zone at $1.40-$1.48. We expect the stock to advance to the key resistance zone at $1.40-$1.48 (breakout price objective and key support-turned-resistance), breaking which, the next resistance is at around $1.72 (peak in Dec '07).

Immediate support at $1.10. Beyond the $1.10 immediate support, we pegged the subsequent supports at $0.96 (peak in Jun '09) and $0.85 (key resistance-turned-support level).

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1 comment:

learn forex said...

hrmm. . this counter has been moving uptrend in despite of others blue chips going downward.
some info. telling the price may go further upward in the next quarter...
Happy trading!