ST Engineering

Commentary:

ST Engineering has been trading within an intermediate downtrend channel since Jun 08. The upper trend channel line has proven to be extremely strong resistance with price action touching it for close to 10 times without pentrating it on a closing basis during the period under consideration. Short term wise, Price action has turn somewhat bullish with higher lows registered based on last trading close. Bullish Counterattack Line, Bullish Belt-Hold candlestick on the last 2 trading days and MA5 cutting MA20 from below lend weights to the current short term bullishness.

Strategy:

Agressive short-term traders can cosider long position at $2.40-$2.45 with tight cut-lost plan in placed. The upper trend channel line which conincide with MA50 line points to a price target of $2.55 where price are likely to face intense resistance.

Conservative traders who wish to trade in the direction of the intermediate trend should wait for price to trend nearer to upper trend channel line before taking short position. However, do note that a break of the MA50 line and upper trend channel line on a closing basis (especially with good volume) will signal a change in intermediate trend from bearish to neutral.