IndoAgri - Trendline Violated
IndoAgri has always been one of my favorite counters because it heeds technical analysis very well. A quick glance at the chart below reveals how well this counter respect each of the trend lines and support / resistance.
The closing today broke an uptrend line within a large rectangular channel formed since November 2009. The width of the channel span between $1.90 to $2.57 giving almost 70 cents of variance for trading purpose.
I would like to see $2.22 ( last significant low ) be taken as a confirmation of the trendline violation. Once this is confirmed, we can look forward to $1.90 ~ $1.95 as a possible entry. If $1.90 holds, we may expect the price to bounce back to the upper channel at $2.50.
Labels: Stock Pick
posted by Market Wizards @ September 16, 2010
Comments: 0
