Thursday, November 1, 2012

My EzionHldg, STXOSV analysis on

Ezion Holdings, one of the top performing stocks in 2012 has been trading in a strong uptrend channel since October 2011. Since mid-September 2012, it has been struggling to break the channel resistance as we see the price breaking up and falling back into the parallel channel. Looking at the moving averages (MA), the current price is below the 10MA and 20MA which heightens the risk of the price getting toppish at this level. However, the price is also near the short-term supporting trend line which indicates support at around $1.25 to $1.27. If the support is broken, this stock might go in to a short-term correction.

STX OSV Holdings has been trading between the range of $1.28 to $1.70 since June 2012. After hitting the resistance at $1.70 in September 2012, it started to trend downwards in a slow manner recently. Looking at the daily chart, we see that the current price is bearish as it is below the 10MA, 20MA and 200MA support, where the three lines are interpreted as short-term, mid-term and long-term respectively. Furthermore, the Bollinger Band has been tightening in the previous month and seems to break loose with the price breaking through the 200MA support. This signifies to us that the volatility is about to increase sharply. In short-term, STX OSV is more downside bias, we may see this stock finding some support at $1.28 level.