Ferro China 080808

Although Ferro China broke the 1.34 neckline on 1 aug, it did not quite reach the same peak it did back in may. It also seems more likely FerroChina could have peaked, as its highs have been lower since the beginning of the week.

Since Ferro China still has not tested the 1.31 support (lightblue ...), there could still be a chance that it is going through a profit-taking phase.

However, we can also see from the chart that the downtrend resistance (upp red) meets the uptrend support (low green) at the 1.34 neckline (blue ...) next week. So next week could be crucial for FerroChina.

If Ferro China can stay above 1.34, we could see it trading sideways before attempting to test the 1.38 (pink ...) resistance.

Otherwise, the 1.31 support (lightblue ...) could be in for some severe test.



For monday :

Support @ 1.34 (blue ...), 1.33 (low green), 1.31 (llightblue ...), 1.29 (low pink, upp blue), 1.28 (low red)

Resistance @ 1.344 (upp red), 1.38 (pink ...), 1.388 (upp green), 1.395 (upp pink)