Ferro China 300908

Ever since breaking the 0.660 support (pink ...) after our discussion on 12 sep, Ferro China didn't quite manage to break it after trading sideways last week. Ferrochina even opened below the 0.570 support (red --) today, before closing close to the downtrend resistance (upp red).

Has Ferro China formed a double-bottom?

If you recall, FerroChina's chart looks similar to those of China Hongxing's and Cosco's. The 0.660 neckline (pink ...) now looks to be quite a strong resistance, with the uptrend resistance (mid blue) and downtrend resistance (mid pink) also meeting at the 0.660 level towards the end of the week.

However, if Ferro China manages to break the 0.660 neckline, judging from the volume distribution bars, there won't be much of an obstacle after that. However, given the recent market sentiments, I won't be surprised if FerroChina forms multiple bottoms.



For thursday :

Support @ 0.608 (upp red), 0.570 (red --), 0.530 (mid red), 0.510 (low blue), 0.485 (low red), 0.455 (low pink)

Resistance @ 0.650 (mid blue), 0.660 (pink ...), 0.672 (mid blue), 0.705 (upp blue), 0.730 (grey)