Ferro China 290708

Ferro China continued its relentless push upwards, breaking the 1.31 resistance (light blue ...) and closing right on the 1.34 resistance (blue ...) and uptrend resistance (upp green). FerroChina also broke the long term downtrend resistance (upp pink).

Ferro China could also be forming the Reverse Head & Shoulders formation - with the left shoulder on 13 jun (1.24), Head on 4 jul (1.05) and right shoulder on 25 jul (1.22). I believe the right shoulder hasn't been completed yet, and we might see FerroChina testing the 1.34 neckline (blue ...) several more times.

The Reverse Head & Shoulders formation is quite a strong reversal indicator. Provided Ferro China successfully breaks the 1.34 neckline (blue ...). If that happens, we could potentially see FerroChina hitting a high of 1.63 (1.34 - 1.05 = 0.29, 1.34 + 0.29 = 1.63) which is the roughly the support level (green --) for FerroChina during the surge in price in may.

Of course, if Ferro China doesn't break the 1.34 neckline, its fall would be equally dramatic as its rise.



For tomorrow :

Support @ 1.34 (blue ...), 1.32 (upp pink, mid green), 1.31 (light blue ...), 1.26 green ...), 1.256 (upp blue), 1.247 (low green), 1.237 (mid pink), 1.22 (blue --)

Resistance @ 1.355 (upp green), 1.38 (pink ...). 1.40, 1.43