Raffles Education – Testing its strong support of $0.535

Raffles Education closed at $0.55 with some heavy selling by unknown big institutions (two big transactions of S$ 500k & S$ 1million each).

Looking at the chart, the stock price is below 20D & 50D MA line and very close to 200D MA of about $0.52 and 61.8% Fibonacci retracement line of $0.535. MACD shows bearish convergence & 20D MA shows a short term down trend.

It will be interesting to see whether the stock price can hold above $0.535 and bounces back from this critical support level. If it breaks below the 200D MA, the selling pressure will be even greater and down trend may start. In addition, we are entering Sept period when STI may start a big correction and this may exert additional selling pressure to all other stocks. I will stay out of this stock for the time being.

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