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.
China XLX is currently trading within a Falling Wedge. Base on chart pattern, current price is closed to wedge resistance. Unless there is a breakout, the price will probably drop in the next one to two months. However, current China XLX PE is about 20 which is over value and also much higher than average PE of 8 in 2007 and 2008. This high PE presents a very unlikely scenario of breaking out from the falling wedge and start a bullish trend.
Fundamentally base on financial report, this company not really fantastic. The following financial ratio is nothing to be proud about.
Base on FY2009 Financial Result:
Noble is currently trading within a falling wedge. Things to watch: Noble may start an uptrend if Noble moves above $1.80 to break the wedge resistance, 20D MA and 50D MA. Otherwise, the down trend will continue to about $1.50 which is the 61.8% Fibonacci Retracement support.
