Wednesday, December 29, 2010

Coastal Contracts Bhd Weakness Ahead

Coastal Contracts Bhd has been in a trading range between RM 2.4 and RM 2.1 for the past few months.  It’s stock price has bounced off the lower boundary of the 20 day Bollinger band.  The 20 day moving average is sloping downwards and will act as resistance for any up move.  This resistance is currently at RM 2.2.  The 2 day RSI is approaching overbought levels.  This coupled with the fact that the MACD indicator is still below its signal line implies that the stock is unlikely to stay in overbought levels for long.   The stock is unlikely to break the RM 2.2 resistance level and a test of RM 2.1 is likely in the next few trading session.  

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