Swiber: Rebound soon?

2009Sep-Swiber-640×603

Swiber has broke out from its 5 sessions down trend yesterday, and today it managed to open at a high of 0.955, which broke out of its triangle and rallied to a high of 0.97 before it got whacked down all the way to close at 0.925. Selling was heavy, but is it the end for swiber?

From chart it seems like there is an immediate support at 0.92 and 0.91 before a rebound. As it nears the end of the triangle, we should see it breaking up or down, where a new trend is formed.

I believed swiber will rebound strongly from the support level as global major market has been rallying and breaking new highs, while STI is lagging behind. A break is almost confirmed, just waiting for the funds to return to singapore market, as I believe many big players are buying stocks in the US and Hong Kong market due to cheaper valuation because of a weaker USD.

Supported by signs of convergence from MACD and RSI, it should be a good buy tomorrow at around that level. A break above the triangle will suggest a target of 0.985 and if able to break the bollinger high band, it could go for a new high.

Cut loss when fall below 0.88, 50% Fibo support level.