Thursday, April 14, 2011
Straits asia: facing selling pressure
Today straits asia closed at 2.54 with above average volume of 7.8 million shares.
The full black candlestick with no shadow indicates that selling pressure is still strong. The closing at 2.54 is just below the confluence of the 20MA and 100MA. Straits Asia had been trending up on the upper Bollinger band until recently. The 100MA at 2.50 may also provide some support.
RSI is trending down and MACD is on the verge of a bearish crossover which will probably happen if another down day occurs tomorrow.
Straits asia also appears to have broken its uptrend channel which is a bearish sign. Expect more downside if the uptrend channel cannot be recaptured.
Strategy : Watch whether the 20MA at 2.55 can be regained, if not it is quite likely that the support of 2.50 will be tested, followed by 2.40. Be cautious as MACD is about to form a bearish crossover.