SoundGlobal: Another resistance level broken.

The last time I had a detailed blog post on SoundGlobal was almost a month ago on 7 December. At that time, I said that the declining 100wMA would provide resistance at about 60c.

Daily chart.

Resistance was taken out decisively today as volume expanded. However, a long upper wick was formed on the white candle with price closing the session at 61.5c, a strong resistance which was tested many times in July/August 2012. It could not be taken out then. Could it give in this time?

Ah, it is always hard to say for sure but the momentum oscillators are definitely looking more bullish this time. There was a lower high on the MACD back then which hinted at a weakening positive momentum.

For sure, we can use TA to see where the resistance levels are likely to be if 61.5c should be taken out in future sessions. How? By using Fibo lines and candlesticks.

Fibo lines.

138.2% is at 68c which coincides with the highs of February 2012. 150% is at 70c and this coincides with the highs of July 2011. 161.8% is at 71.5c and this coincides with the support turned resistance of May/June 2011.

It is good to bear in mind that prices don't go up or down in a straight line. They climb a wall of worries and go down a river of hope. So, although sentiments have taken a turn for the better, it would not be wrong to take profit through partial divestments at these resistance levels.

Weekly chart.

The weekly chart shows a clear break out from resistance provided by the declining 100w MA. Of course, the week is not yet over. If the session tomorrow should see share price closing clearly above the 100w MA, then, in the new week, there is a chance of price rising to test resistance at 68c, 70c and even 71.5c.

Related post:
SoundGlobal: Breaking out of resistance.

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I like to share good deals when I find them and did just that in my blog post on Wilmar last night. I said there were two copies of "Technical Analysis for Dummies" for sale at US$9.48 each and that they were really great bargains. A reader sent me an email to say that they are no longer available. I was surprised and checked just now. Indeed, they were both sold to readers of ASSI. Hey, you guys are fast!

I don't know when they might have more copies at US$9.48 each since BetterWorldBooks sell pre-owned books and they don't have regular shipments from the printers.

Well, when I checked just now, there are 5 copies of this book left which are in much better condition than the two which were sold at US$9.48 each.

These 5 copies are priced at US$17.36 each. With free shipping, they are still fairly good bargains. Of course, you would also be helping the environment and funding literacy for the poor by buying from BetterWorldBooks. :-)

A simple guide to the fundamentals of technical analysis. 


See:
Technical Analysis for Dummies