Posts
I last added to my long position at 49.5c on 5 November 2012. For the reasons why I added to my long position then, please see my last blog post on the company.
Today, Sound Global's share price broke resistance and formed a long white candle on relatively high volume. A long upper wick was formed towards the end of the session. This tempers the bullish picture somewhat.
On the daily chart, the positive divergence which was spotted earlier is playing out. So, we had an early indication of a possible uplift in share price. Therefore, it should not surprise us that resistance was finally taken out although it was anyone's guess when it was to happen.
On the weekly chart, the MACD, a pure price momentum oscillator, looks to be on the verge of a bullish crossover with the signal line in negative territory. A rebound in price could meet with resistance presented by the flat 50w MA at 56c and the declining 100w MA which is currently at 60c.
Now, whether the counter's share price is able to finally form a higher high is anyone's guess although the higher lows formed in the MACDs of both the daily and weekly charts are very encouraging.
Fundamentally, SoundGlobal's valuation is undemanding. Technically, it does seem as if its share price has bottomed although we cannot say that for sure until a higher high in price is seen.
Related post:
SoundGlobal: Smart money is buying.
Bloggy Award
1 comments:
China's economic growth may pick up to above 8 per cent in 2013, as economists expect the government to launch policies to boost recovery.
The country is expected to report 7.5 per cent this year, the slowest pace in recent years.
Economists say investment will remain as the pillar of growth the Chinese economy in the short term, despite the government's push for consumption.
http://www.channelnewsasia.com/stories/economicnews/view/1243793/1/.html
Post a Comment