Monday, March 18, 2013

We Holdings (Seven cents) - Short-term oversold

This counter has fallen from a high of 20.5 cents on an intra-day basis to just seven cents currently. Inevitably, a rebound is imminent. Resistance for this move is unlikely to go much beyond 10 cents, the level of a one-third retracement, and the 50-day moving average.

The downside is probably limited. The low of 5.4 cents made on March 12 may hold for now. A recovery is likely to be difficult.

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