Saturday, February 28, 2009

Straits Asia - expect weakness ahead

Straits Asia 280209
This could be messy to some of you, but I am trying to check if the trendlines are creditable.
I started by drawing the downtrend lines
Surprisingly, most of the highs and lows hit these lines.
Interstingly, when I zoom out and extend the lines, they are the long term downtrend lines too.
Usually, I do the reverse first.
Conclusion - these trendlines are creditable.

The midterm trendlines showed the Straits asia is bouncing within this range.
On 25th Feb 2009, we saw exceptional high volume, with 12m done at $0.825.
On 26th Feb 2009, it went higher and turned down on 27th Feb 2009 - which is a shortterm breakdown.
If there's no more good news to push it up, we are likely to see force selling on 4th March 2009.

Likely target is $0.77, where most of the trendlines meet.
If the force selling is fierce, my next targets are $0.755 and $0.735.
Monday resistance at $0.825.
Supports at $0.795, $0.755 and $0.735

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