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The entire contents of this blog are meant for pure reading pleasure. Nothing on this blog should ever be taken as advice to trade under any circumstances. By entering and reading this blog, you have agreed that I am not in anyway responsible for your trading outcomes.

I am NOT A PROFESSIONAL FINANCIAL ADVISER, and the analysis is just a market novice's opinion.

Monday, October 4, 2010



In short, after doing an evaluation of SebMarine's chart, my observations are as follows

Observations:
-Px still trading insides symmetrical triangle.
-Upper band of triangle to be broken when px hits above 4.00 / 4.01
-MACD close to a crossover to the positive region, and blue line crossing over the red.
-Price broke the 150D MA though fail to close above it.
-Volume increased.

Trading Hypothesis:
I expect that sembmarine to break above its symmetrical triangle soon when price goes above $4.00. Given such a breakout from the stock's symmetrical triangle, we can expect the price to hit around 4.40 in due course. However short term resistance of the price is around $4.14, so traders can expect to liquidate around this price to locked in some profits first.

Alternate hypothesis:
Unless prices make a retreat this coming week back to the $3.8x region, we would unlikely see a breakout below the symmetrical triangle, given the optimisstic conditions in the market currently. Howeve if it does, it is advised that traders cut loss below $3.88.

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