GGS 22.11.2007

GGS is a stock that is widely discussed, and today we take a closer look at this stock. The stock price has been in a more or less sideway movement the last 2-3 months. November 19th the stock fell quite a bit along with the rest of the stock market, and have for the last week continued this downward movement but with a small rise in price today. This last week movements has increased the ADX value indicating a strengthening in trend. -DI is the dominant factor but from the last three days we see that it has decreased which is positive. This can mean that the bottom formed yesterday is THE bottom for now and things will improve. Due to low ADX values we put extra emphasize to the actual value for RSI. We see that it has just moved up from the 30 - oversold level which could indicate a buy signal. Putting the RSI chart together with the price chart the price could fall to about 1.45 NOK, but there is room for a rise up to about 1.63 NOK at the moment. What will be important then is whether the price can break up through the falling resistance line seen in this chart. Other than that it also seems like a small divergence has formed between RSI and price that could indicate a rise in price is on its way.