KS Energy is forming a wedge and the volume is dropping. It also broke 20D and 50D MA support levels. $1.161 is the critical support as it is 61.8% Fibonacci retracement level and also the wedge support. Base on the chart, probability of breaking down from the wedge support is higher than breaking the resistance of the wedge (which KS Energy has tried 4 times). The current level is not the entry point for me.
FRE & FNM broke the critical support level (61.8% Fibonacci Retracement level) after a KBW analyst downgraded the two to the firm’s lowest rating, cut price targets on both stocks to zero from $1. KBW said their common and preferred shares would be “worthless” given the nearly $100 billion they will continue to owe the government, even if recapitalized. FRE broke the critical support level of $1.705 and FNM broke $1.483 support level. Both stocks are below the 20D & 50D MA, all other technical indicators show bearish convergence.
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I predict a short term rally after seeing a hammer candle (a trend reversal from short term down trend) yesterday. Today GoldenAgri closed at $0.45 with 86.3 Million shares traded (#3 Most Active Stock). The 10D MA just crossed 20D MA and the stock price is trying to cross above the 10D MA line. All other indicators showed some bullish strength. Strong support at $0.43.
