Update on StraitsAsia

Evening everyone,

I have an update on StraitsAsia, AJ1.SI, which I have discussed about in the past. A good way to search for past posts on this blog is to key in the stock symbol of the counter you are interested in in the search box on the right hand side. Key in the symbol plus “.SI”; in StraitsAsia’s case, “AJ1.SI”.

My last posts showed a StraitAsia breaking out of an inverted head and shoulders. Also, I then had a target of $3.00 for StraitAsia. Take a look at the chart below. AJ1.SI hit a post-breakout high of $2.80, and a 10%+ retracement ensued.

A support level from an inverted head and shoulders pattern would be the neckline. In this case, I pegged that at about $2.40. If you look closer, StraitsAsia has tested that support once, and is currently testing it again.

Right now, I can see an upward parallel channel. Not only is StraitsAsia testing the neckline, the $2.40 zone is also the bottom of the parallel channel. Finally, this zone is also the 38.2% retracement level of the fibonacci retracements drawn by taking the low of the channel to the highest price post-breakout. From what I have gathered in StraitAsia’s chart, a rebound is imminent. $3.00 seems like quite a way to go, but I will have to stick to it. So let us see what happens in the remaining weeks of 2010.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

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