Best World – Beware of Reversal

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Best World’s chart is redrawn after issuing Bonus 1 for 5 Shares on July.  There is a dilution effect and thus previous price history were adjusted down. Best World is still trading in a Wedge pattern but today trade see a Doji candlestick, indicates a stop of the recent up trend. Coincidently, this Doji candlestick appears at the resistance of the Wedge pattern. In addition, Stochastic and RSI are in Over Bought region. Base on this observation, there is a tendancy that Best World will reverse the trend and head south in the next few trading sessions.

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Citigroup (C) – Forming a Wedge

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Citigroup has formed a wedge and currently very close to the wedge support near the 61.8% Fibonacci Retracement Level.  Currently Citigroup just broke below all the three moving averages (20D, 50D, 200D) which is a bearish sign. Watch closely for the breakout. Base on the chart pattern, breakdown from this wedge pattern may send the stock to $1.00 but personally I think is unlikely to reach that level. I feel that the downside risk is limited and I am waiting Citigroup to go lower after breakout for long term investment.

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