Wednesday, June 14, 2006

Another strike by the bears!

STI tested it's low at 2280 thereabouts today. Even with lighter volume due to the worldcup going on, there was no escape from an overnight big loss in Dow Jones. As i am writting, Dow has closed another 88 points down...more heartache in 5 hours time. I wouldn't call 2280 as a key support level because the downside pressure has not subsized yet. There is the all important Fed meeting end of June. For those who are concerned about rebounds and reversal, you can consider trying to long when we are more than 10% away from 200MA. Or, we break 200MA and stay above.

Semb Marine by popular demand. The most obvious sign is the breaking of 200MA. As the saying goes, the bulls play above the 200MA line and the bears live under it. A resistance gap can be seen at 2.88 to 2.80, trading opportunity will be a protective stop above 2.88 there abouts. Fibbo retracement at 23.6% (2.697) has been broken. Next target could be 2.272. It will however be wonderful if stock price float ard this point and refuse to go lower. I'm watching the gap to determine it's nature.

DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings. Copyright © 2006 GrowMoney Blog. All rights reserved.