Faber lost 11 sen to close at RM2.74 yesterday. The drop resulted in the violation of its uptrend line support at RM2.82. As at 11.00am this morning, Faber has a sudden sharp rebound to RM2.84. Can Faber reverse its bearish breakdown yesterday? From the chart, we can also see the bearish divergence in the MACD & RSI indicators as well as the -DMI crossing above the +DMI. These 3 indicators seem to signal unfavorable odd against Faber's present rebound. Let's wait & see how this stock will fare over the next few days.
Chart: Faber's daily chart as at Nov 12, 2010_10.50am (Source: Quickcharts)
Based on the negative reading of these 3 indicators, we should wait for a convincing rebound in Faber (say, the stock going above RM2.90) before venturing into the stock. Faber is a stock with promising fundamental but I have misgiving about the management's accounting report (go
here).
My observation is that the recent fall of Faber share price is due to substantial shares (approx. 1.568m) disposed by Universal Trustee (M) Bhd, who is the second larger shareholder of Faber since mid Sep 10 when Faber share price hit RM3.15 the highest.
ReplyDeleteI still haven't figure out the reasons for the disposal.
Anyone could comment?