Above are the daily, weekly and monthly charts.
What prompted me to buy this stock was that it was still profitable, is about 80% owned by Temasek and near 2009 lows. I had seen the monthly chart that it was that low and a nice Bullish Divergence had formed. I was looking to be patient with this stock since it does show much potential for a strong reversal.
True enough, there was a strong high volume breakout today.
As can be seen by the daily, it blitz through 35c resistance of the daily 50MA as well as the highest high after the August selldown. Next resistance is 37c based in daily chart with 100MA around 38c.
From the weekly chart, we see that today's high of 36c coincides with 14ema for weekly. I generally use the zone between 14ema and 20ma as the long/short zone to bet on a continuation of the trend. As such, we are nearing serious resistance. The 20MA weekly is at 37.5c.. somewhere close to where we see resistance on daily. There's also a small bullish divergence on the MACD for weekly.
Now to the longer term investors, we can see the monthly chart has that tempting bullish divergence. The 14ema and 20ma for monthly are quite some distance away at 46.5c and 51.5c respectively...
Now I need to decide for myself, do I take profit around 37-38c or do I sit still based on the monthly charts...
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