STX Pan Ocean 110708

After closing right on the long term downtrend support (low red) on 4 jul, STX Pan Ocean staged a typical dramatic recovery the next trading day, coming to within touching distance of the 1st downtrend resistance (mid pink) and 2.87 neckline (pink --).

From here, there could be 2 ways STX Pan Ocean may continue - trading sideways, mirroring a pattern similar to the 28 mar to 14 apr period, and then exploding upwards.

For this scenario to happen, STX Pan Ocean would at least have to trade above the 2.75 support (blue ...) next week, and break the 1st downtrend resistance (mid pink). The upside would probably be limited by the 2.87 resistance (pink --). Volume would also have to start picking up.

Or, we could see STX Pan Ocean's trading pattern taking yet another dramatic twist downwards, similar to the pattern from 26 may to 6 jun. This scenario would probably take place if STX Pan Ocean breaks the 2.75 support (blue ...) as well as the uptrend support (low blue).

If STX Pan Ocean breaks the 2.75 support (blue ...), there could still be a possibility for it to trade sideways, between the 2.75 neckline and 2.62 support (red ...). If the 2.62 support breaks too, we could see STX Pan Ocean testing the 2.52 support (red --).



For monday :

Support @ 2.75 (blue ...), 2.65 (low blue), 2.62 (red ...), 2.52 (red --), 2.45 (green --), 2.41 (low pink), 2.38 (blue --), 2.32 (low red), 2.28 (pink ...)

Resistance @ 2.85 (mid pink), 2.87 (pink --), 2.93 (upp blue), 2.95 (green ...), 3.03 (mid red), 3.05 (upp pink)

Hope you find my analysis helpful. Thank you for your support !!