Singapore Listed Stock Ferrochina - potential technical rebound?

Singapore stock comments

Singapore listed stock Ferrochina has been sold down heavily despite posting a positive set of financial results for 2Q08 on 14 August.  Subsequently, stock price fell from 1.29 to a low of 0.925….down a whopping 28.3% within 5 trading days.

I usually do not use fundamental analysis (FA) to trade stocks but would  prefer to combine FA with TA (technical analysis).

Some of the technical indicators that i am using such as CCI, MACD, W%, RSI are telling me to be alert to a potential rebound. I would be looking at 1.02 as a near term resistance. It has been tested twice but failed to close above this level.  To me, a close above 1.02 will indicate potential more upside since this near term resistance is taken out.

One may ask how can one knows if 1.02 can be successfully take out?

The answer is…..I will never know for sure, so I will usually take a small position when 1.03 is triggered and wait till 430pm and see if price is still above 1.02 then may add more as market moves closer to the end of the day.

With Dow Jones powering up more than 100 points tonite, there is a good chance that 1.03 may be triggered……no point guessing though I shall just sit back and wait.

happy trading

rooney