SBS in a testing time

Evening all,

I have an analysis of SBS Transit for this evening. First up let us look at the weekly chart. In the good days of 2006/2007, SBS put in a strong rally; after that, SBS took back all its gains in 2008. The pre-crash level is at the $2.13 level. Coincidentally, the 200-week moving average is right about that region as well. Because of such strong resistance overhead, I see SBS as trading in a testing area now. You can call it a make-or-break situation too. If SBS is going to face rejection here, I see nearest support coming in at $1.90, which was a resistance-turned-support level.

In the enxt chart, you will see an upward paralle channel that I have fitted onto SBS’s chart, depicting the slow recovery from the crash. Recently, SBS broke out of that parallel channel. In most cases, this is a positive sign. A break of a channel to the upside usually indicates a strong move. For this reason, I am ready to be a bull on SBS if it shows that it wants to get above – and stay above – the pre-crash level. This will be a stock I will watch closely in the year ahead.

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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