Asia Environment in an upward parallel channel

Hello everyone,

Even now, I still do not see much to comment on on forex charts or stock charts. After another mundane evening browsing through the charts in my workspaces, I found a chart pattern on the chart of Asia Environment – A58.SI.

Straight off, I have drawn an upward parallel channel on the chart. This channel started forming in the middle of 2010, and Asia Environment has made a series of ups and downs – leaving behind an upward parallel channel. Price has been sliding down over the past few weeks, and today’s trading action puts Asia Environment’s stock price at $0.225. There is slight room for downside, seeing the bottom of the channel comes in at $0.21.

Next, taking the low from the crash of 2008 and the high of the 34 cents region, I have plotted the fibonacci retracements levels. After a nice good 200% recovery, Asia Environment experienced a retracement, and it was so huge you can say A58.SI lost all its 2009 gains. Anyway, the current chart pattern – a channel – is supporting a second surge up. Price tested and got rejected at the 38.2% level, and is now finding support at the 50% level. With the parallel channel looking strong, I will be expecting the test of the bottom of the channel to be followed by a rebound. Let us see how this goes along in the weeks 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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