IndoAgri past the point of no return

Good day to all,

Hope you are all having a good weekend. I will get straight down to business here. This is IndoAgri, 5JS.SI.

I covered this counter several times in the past. In my last post, IndoAgri posted a bearish pattern on the chart and price tumbled significantly. For quite a long time – throughout the whole of 2012 – IndoAgri found itself in choppy waters with a clear support at about $1.15. In April of this year, IndoAgri broke through the strong support level. Also, you can make out a triangular pattern of some sort because of the consolidation last year. It will be considered a very large triangle, and volume is not perfect. I will not trade it as a pattern play, but I think at this juncture, it is quite clear that I am a bear on IndoAgri.

One characteristic I have noticed about local counters is this: after the recovery from 2008-2009 lows, a stock may go on a long run-up. Then, the tide changes for the reasons that may be, and the stock starts selling down. Halfway down, the stock may find a period of consolidation. From here, either the stock gets ready for a move back up to post-crash highs or it will languish and drift down towards crash lows. Breaking down past $1.15 signals the point of no return for IndoAgri, as such, I sound out the bearish alarm once again.



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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