Saturday, June 4, 2011

Swiber -- 4th Jun 11

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

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