Good day to all,
Hope you are all having a good weekend. I will get straight down to business here. This is IndoAgri, 5JS.SI.
I covered this counter several times in the past. In my last post, IndoAgri posted a bearish pattern on the chart and price tumbled significantly. For quite a long time – throughout the whole of 2012 – IndoAgri found itself in choppy waters with a clear support at about $1.15. In April of this year, IndoAgri broke through the strong support level. Also, you can make out a triangular pattern of some sort because of the consolidation last year. It will be considered a very large triangle, and volume is not perfect. I will not trade it as a pattern play, but I think at this juncture, it is quite clear that I am a bear on IndoAgri.
One characteristic I have noticed about local counters is this: after the recovery from 2008-2009 lows, a stock may go on a long run-up. Then, the tide changes for the reasons that may be, and the stock starts selling down. Halfway down, the stock may find a period of consolidation. From here, either the stock gets ready for a move back up to post-crash highs or it will languish and drift down towards crash lows. Breaking down past $1.15 signals the point of no return for IndoAgri, as such, I sound out the bearish alarm once again.
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