ACTA 08.11.2007

As we expected last time we looked at ACTA the stock price has risen the last two days. Can we expect the stock to continue this rise the coming days? The stock price is getting close to the falling resistance trendline which means that there is a possibility for a reversal in price down towards the support level again. Looking at RSI we see that RSI is almost touching the long term falling resistance trendline, but that there is still room for further rise in the stockprice according to the rising trend channel that we have identified in the RSI chart. ADX has been fallen since beginning October indicating that the stockprice is moving into a less trending phase. This is positive as this can indicate the end of the long term falling trend. Short term it seems that the stock can still rise a bit before it might fall down to the support level again. RSI is still quite low so there is also good chance of a breakout up through the falling trendline. Looking at the volume we clearly see that things are getting positive thereby also further strengthen the possibility of a breakout through the falling trendline.