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ST Engg is currenty trading in a down trend. The 200D MA is sloping down. Unless ST Engg can break the down trend resistance and 200D MA and stay above $3.00, the stock is likely to continue to fall towards $2.695 the next 50% FR in the near term, followed by $2.54 (38.2% FR).
ST Engineering upside is limited base on current chart pattern. This stock has been moving sideway between $3.00 to $3.30 from Dec 2009 until now. $3.30 proved to be a tough resistance to break and the upside is also limited by the support turned resistance of the uptrend line. Unless there is a breakout with huge trading volume, the downside risk is much higher than the upside potential. $3.00 is the very strong support level. In addition, with current PE of 22.12(the highest of the past 4 years) and the dividend yield of 2.146%, ST Engineering is not a really attractive investment choice for me.
ST Engineering is testing the $2.96 resistance for the 2nd time. If this stock fails to break the resistance, a double top may be formed. Immediate support at $2.82 and critical support at $2.7.
