Saturday, October 5, 2013

Hyflux Stuck In Downtrend

On 3 October, shares of Hyflux closed $1.19. The chart shows that this stock is still on a bearish trend as the price is trading between the trend line channel where several lower highs and lower lows have formed. After bouncing off the 52-week low of $1.14 in September, the price hit the trendline resistance at $1.245 where it coincided with the 50-day moving average. Moreover, the price shows good reactivity with the 10-day moving average for the past few months. When the price is above 10-day moving average, we can see that the price continues to rise and when it drops below the 10-day moving average, the price continues to fall.
Chart On Hyflux
Currently, Hyflux price is trading below the 10-day moving average. One can consider to go short with a stop-loss placed around $1.23 and a target price at the psychological level of $1.00 on a mid-term time frame.