Swiber closed $0.745 on 3rd Jun 2011. The last time it came close to such an level was on 13th Jul 2009 which it closed at $0.725. However, it appeared to be forming a falling wedge formation in the process. The apex of the falling wedge is at $0.725 ( the low on 13th Jul 2009 and can be considered as a double bottom if $0.725 can be supported ). A breaking out of the falling wedge would be at $0.765. Depending on the strength of the breaking out, several resistances are along the way. First resistance is at $0.825, next $0.90 and then to between $0.96 - $0.975. The $0.96 - $0.975 range would be an expected target of the breakout should the breaking out has good strength.
If $0.725 failed to support, the formation will be void and further downside could be seen.
At $0.745 with a downside risk of $0.725 and a potential upside of $0.975, the rewards to risk ratio is 11.5x. Alternatively, investors could wait on confirmation of breaking out at $0.765 with high volume, then the rewards to risk ratio would be 5.25x
