Monday, June 17, 2013

ST Engineering ($3.69) — Decline to continue

Prices have broken below the 200-day moving average at $3.80. Medium-term indicators all point to a continuation of the decline. Quarterly momentum broke down last month, confirming the down trend. Volume is expanding on black-candle days, an indication of selling. ADX is rising and the DIs are negatively placed. Support appears at $3.50 but, if the downmove is strong, this level may not hold and prices may well drift lower to the $3.20 area.

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