Wednesday, October 31, 2007

Swiber's chart

Was playing with chartnexus, practicing drawing my support/resistance/trendline when i came across this nice trendlines that can be drawn for Swiber.

One of my friends asked me about the validity of support and resistance. I think the above chart shows how most of the time, support acts as the underlying strength for the stock to bounce up while the resistance acts as the ceiling for the price. Of course, where the support/resistance is broken, more downside/upside will be expected.

Long term support for Swiber is around 3.560. I think it'll hold, based on other indicators. The short ascending triangle is not invalidated. Let's see how it develops from here.