SINGAPORE (Aug 18): Here is one technical chart to monitor this coming week.
Best World ($1.035) looking for support
After driving up this counter up 136%, it fell 35% or 55.5 cents in Aug 7-17. The 21-day RSI is at 28.5, above its one-year low of 20. So prices can be considered to be in an oversold position. The downside target has also been met. Based on the chart pattern, prices broke below the neckline of a double top at $1.36 indicating a target of $1.13. This target also coincided with a 50% retracement level.
The next major support is at 80 cents, a level that coincides with 50% of the high. This should be able to stop the decline.
In the immediate term, a sign that the counter could be readying for a rebound would be a doji on the candlestick chart as this pattern would break the sharp fall and arrest the down-momentum. A doji or minor reversal formation could materialise but any upturn will probably be a relief rebound.
Longer term trend-following indicators such as the 50-day moving average are turning down, and prices are below the 200-day moving average.
