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However, as price declined from a high of $1.92 on 11 April 2011 to touch a low of $1.66 in the last session on 6 May 2011, the OBV declined much lesser and, in fact, the OBV is much higher compared to where it was on 9 Feb 2011. This, to me, suggests that some accumulation is happening and that smart money could have returned to the counter, quietly. In the last session, price closed at $1.69, forming a white spinning top, a reversal signal. It remains to be seen if the signal is a valid one.
All the momentum oscillators are suggesting that the counter is oversold. The MACD is declining in negative territory but we could see a rebound in price. In the event a rebound takes place, expect initial resistance at $1.75 and stronger resistance at $1.83 which is provided by the declining 100dMA.
Whether the 100dMA could be overcome is crucial in determining if the stock could move higher in price. That's for another blog post on another day, perhaps.
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4 comments:
Hi AK
Are you waiting to divest or accumulate more?
Hi ortho,
I already bought more at S$1.70/share. Buy at supports and sell at resistance. ;)
not suitable for income kind of stock? yield pretty low..
Hi WK,
This is a growth stock. Not a good candidate if we are investing for income although a dividend of 2c per share at my average price was still more than 1% yield and beats FDs.
Oh my, I used the word "candidate". Sorry, must be the GE fever. ;p
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