Title: When stock hit below 1 or 2 year Low!
Description: where multi-support found... BEWARE!
Description: where multi-support found... BEWARE!
Lion - December 5, 2005 11:59 AM (GMT)
2005-12-05 weekly chart - Example 1
Air Ocean
Happen to find that this is quite the latest hottest stock that stays at the top volume list.
$0.19 was the lowest level first seen on mid-Oct '04 over past two years. Subsequently, we saw afew re-test of this level within Mar~Jul '05 but AO managed to survive the scare.
When it finally closes below $0.19 on 21/10/05 (the D-Day!!), we can make an initial guess that something has went wrong.
Coupled with some weekly bearish TA indications, we know that we must avoid this stock for the time being:
1. long-term trend (blue-dotted) support broken
2. weekly MACD crosses below signal line
3. 14days RSI broken below uptrend line
Thou' these bearish indications may not mark a demolition, it serves enough warning to avoid the falling stock.
Air Ocean
Happen to find that this is quite the latest hottest stock that stays at the top volume list.
$0.19 was the lowest level first seen on mid-Oct '04 over past two years. Subsequently, we saw afew re-test of this level within Mar~Jul '05 but AO managed to survive the scare.
When it finally closes below $0.19 on 21/10/05 (the D-Day!!), we can make an initial guess that something has went wrong.
Coupled with some weekly bearish TA indications, we know that we must avoid this stock for the time being:
1. long-term trend (blue-dotted) support broken
2. weekly MACD crosses below signal line
3. 14days RSI broken below uptrend line
Thou' these bearish indications may not mark a demolition, it serves enough warning to avoid the falling stock.
Lion - December 5, 2005 12:12 PM (GMT)
2005-12-05 weekly chart - Example 2
AEM-Evertech
AEM is another one. Like Air Ocean, the multi-support is clearly found at $0.175 (as well as 1 or even 2 year Low!)
The D-Day was on 09/09/05 when it finally closes below $0.175 . Coincident, we see a very clear bearish Descending Triangle. The following week was a "trap" and the market finally proves itself.
Again, TA indications supports the early warning:
1. weekly MACD crosses below signal line and never look back even when price stage a minor rebound after 09/09
2. 14wk RSI shows a symmetric triangle breakout
AEM-Evertech
AEM is another one. Like Air Ocean, the multi-support is clearly found at $0.175 (as well as 1 or even 2 year Low!)
The D-Day was on 09/09/05 when it finally closes below $0.175 . Coincident, we see a very clear bearish Descending Triangle. The following week was a "trap" and the market finally proves itself.
Again, TA indications supports the early warning:
1. weekly MACD crosses below signal line and never look back even when price stage a minor rebound after 09/09
2. 14wk RSI shows a symmetric triangle breakout