Stock in Focus: Trans-Asia Oil and Energy Corp (PSE:TA)
The stock, Trans-Asia Oil and Energy Corporation (PSE:TA) is generally in bearish trend both in short and midterm.
1. In a daily chart (based on last traded price as of July 3, 2015), MACD line is trying to cross the signal line which signifies a reverse of trend if this will continue. It is supported by stochastics where %K is above %D whcih may start the bullishness.
2. Considering the trend strength is not that strong, if the bounce continues, just watch out for the support-turned resistance at 2.20/2.21.
3. Checking the short term trend, it is still bearish as per ichimoku elements but the price action of the previous candles attempted to escape from the downtrend.
4. In a midterm trend through its weekly chart, price action is showing that the downtrend may continue as per ichimoku elements. There is a resistance level which is considered a strong support-turned resistance at 2.2.
5. Considering item no. 4, the short term trend may not easily become bullish but a possible dead cat bounce. I find these two resistance levels which are strong: 2.20 & 2.26 (both in daily and weekly chart)
6. This stock may also move in range trading between 2.09 to 2.26 which is possible as can be observed in a weekly chart.
If the bearish trend continues in the next few days/weeks (based on weekly chart), just observe the strong support at 2.15/2.14 as it is in a longer time-frame which is quite strong, otherwise another support at 2.09.
Check this chart for confirmation:
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