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Straits Resources Ordinary (ASX:SRL) closed on Friday 12th September 2008 at $4.00. The Head and Shoulder measurement formula (vertical red lines on chart) indicates a minimum price target of $2.00 over the next several weeks, possibly months.
Note the declining 50, 150, and 200 day Simple Moving Averages. All the signals on this chart ought to be worrying longs and making shorts smile. On the way down to the expected $2.00 price and below, expect some rallies on short covering and wishful-thinking bottom pickers.
Good luck to all with SRL, long or short or out (on the sidelines).
Did you know you can get our weekly forecast for any ASX stock for 10 weeks for a total cost of only $55.00 (including GST)? Contact us at DonoghueTechnicalAnalysis.gmail.com
James Leo Donoghue in Sydney, Australia
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