Support 1: 4.20 Resistance 1: 4.06
Resistance 2: 3.86
ST Engineering strong bullish move has potentially come to a halt. Base on the Elliott Wave count analysis, the stock has completed 5 minor waves, and it soon will be starting the corrective wave down.
To further explain the strong bearish move ahead, the end of the 5th wave shows an evening star pattern and the stochastic oscillator is showing an overbought condition, which is a key signal to end the 5th wave.
In the near term, the stock will face a downward resistance at 4.06-4.00 level, should it rebound, the rebound will most likely be a short-lived rebound and then carry on with the 3rd wave movement downwards till 3.86.
*Should the stock breaks above the resistance price level of 4.20 and close 2 strong bullish candlesticks above; there is a possibility it might extend into an impulse 5th wave extension wave.
Red line = 200 periods moving average
Blue line = 50 periods moving average
Green line = 22 periods moving average
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