Market Diary:
World Indices:

Saturday, July 30, 2011

IndoAgri Update

On June 28, I have identified a bullish divergence in IndoAgri. This bullish divergence, along with a mini double bottom formed between June 17 and July 18 provided the basis of a bullish reversal. The counter breakout from a horizontal resistance on Friday and is now facing resistance from a major downtrend line.

The bulls need a sustained violation of the major downtrend line in order to advance to $1.775 and $2.00. Failure to surpass this downtrend line calls for a retest of the double bottom low at $1.51.

Parabolic SAR buy phase has been triggered in the Weekly Chart. The odd favors that IndoAgri is likely to overcome the downtrend line and continue to advance. Position traders may consider to start their accumulation.