Straits Asia Resources has been climbing up steadily since the breakout from the Falling Wedge.
The current uptrend is still intact with the uptrend support at $2.20 (which is also a 50D MA support). SAR has moved above 20D MA, 50D MA and 200D MA.
Straits Asia Resources (SAR) has completed the breakout from a Falling Wedge after testing the support at the breakout point (shaded in green) which is also the 50D MA support. Currently SAR is testing a long term trend of 200D MA resistance at about $2.14. If this resistance is broken and turned to support, SAR is on the way to reach its price target of minimum $2.60. Falling Wedge in an up trend is a continuation pattern.
Straits Asia broke the 20D MA, 50D MA and 61.8% Fibonacci Retracement resistance in the last trading day. The stock also looks like breaking out from a falling wedge. If this breakout is successful, the price target is $2.60. The next immediate resistance is about $2.10 which is the 200D MA resistance. $2.00 should be a strong support. All other technical indicators like MACD, Stochastic, RSI, Parabolic SAR, Bollinger Band show the bullish strength. This level looks like a good entry level.
