Straits Asia Resources (SAR) broke the $2.79 resistance and currently pulled back to test this previous resistance turned support level. If this support is strong enough, $2.79 will build a strong support to propel Straits Asia Resources to the new level. Next immediate Resistance is at 123.6% Fibonacci Retracement Level of $3.038.

Catalysts:

• Highly potential re-rating of the stock target price to revise SAR’s growth in EPS by stock analysts due to rising coal price ( Reduced in coal supply due to flood in Australia).
• Issue of Principle License for Mining Sebuku’s Northern Leases by Ministry of Forest.
• 24 Million shares boughtat $2.59 on Jan 13, 2011 by Substantial Shares holdes (Insider Trading). Read Here to see why insider purchase is important.

Summary:

• Straits Asia Resources has high potential to go higher. I am revising my own exit price target of $3.45 (161.8% Fibonacci Retracement Level).
• Straits Asia Resources current price level is at FAIR value. Not a right entry level for those people who are investing. However, $2.79 is a good entry level for trading IF this support is strong. All the recent news and chart analysis are more suitable for trading. Take note that Exit Strategy must be planned if the chart pattern show trend reversal.