TA from DEC. 30:
exchange2000.com
Last month's TA was 100% (unusual) on target....got 2 good position trades out of SEEK from it. One day trade as well.
Some TA for today (1/28): SEEK's heavy selling into the close on an otherwise up day for the market has done some technical short term damage going into tommorrow.
To start, the most popular indicators of the technicians are the Moving Averages. SEEK recently bounced off the 21 EMA and 50 EMA on Monday. Trading was lighter than average, and momentum could not be sustained, as demonstrated with today's trading action. Seek is now trending back down to support at 11 1/16 (21 Day EMA). The 50 EMA is current 10 7/8. Bearish
Volume has been trending down as well, with today's volume closing at 661K shares, just a hair shy of the 21 day V-EMA. SEEK has not trading above the V-EMA all week. Interest is fading short term. Bearish
SEEK is currently trading in the upper envolope of the Bollinger Bands. The bands are wide and loose, sugesting extreme volitiy. Support is pegged at about 11. If SEEK breaches 11 support, watch out. I doubt it would fall to lower envolope support (8) though. Bearish.
MACD Histogram has been trending down since it's high of .32 on 1/20 to a low (today) of .079. If trend continues for rest of weak SEEK MACD will go negative by Friday or Monday close. Kind-of bearish.
Smoothed Rate of Change (S-RoC) has been trending upward since it diverged on 12/30 when I posted my last TA. Nothing much to read here. Neutral.
Relative Strength (RSI) currently at 57, trending with stock price. Since RSI crossed 70 on 1/20, it has been trending down. Kind-of Bearish
More RSI stuff: ADX crossed BELOW -DI today. +DI less than both of those. Bearish.
SEEK had a significant Candlestick reversal signal today that will be noted by many of the Eastern chartists as one that can not be ignored. The last 2 trading days complete a sequence know as a Dark-cloud cover reversal signal. Yesterdays white candle could have been longer, but the fact remains that todays BLACK candle opened higher than yesterday's close, and the black body closed well within yesterday's white body. Very Bearish.
Stochastics are neutral.
Looking at the chart, I show our next support at about 11 1/4. It is weak though. Support below that is at 10 7/8, and is substantial. In the unlikly event SEEK establishes a sustained downtrend over the next few days, it will take considerable selling (4.4MM shares) to overcome 10 7/8 in the short term. Resistance is substantial at 12 3/4, and at the present time does not look like something that can be broken near term (this week, early next week) without a major turn in trading action.
Looking at the chart furthur for trading patterns, It looks like we may be starting a Descending Flag pattern, where SEEK establishes breif, week-long shallow up trends, followed by steep 2-3 day corrections. Today may be the start of the first of several (2-3) such corrections. A trading opportunity.
Currently I hold no postition. I am looking to reenter shortly (no pun intended<G>) long. |
