GGS 26.11.2007

We looked at GGS last week and it is now time to see how things has developed since then.
We said that the stock could fall down to about 1.45 NOK and rise to about 1.63 NOK. The stock price ended at 1.44 NOK today which is on the support line drawn earlier. We also see that todays low found support at the earlier drawn falling support trend line. The fact that these support levels held today was a good signal. Looking at RSI we still see higher bottoms and a positive divergence. The volume traded today was relatively high giving further support to our hypothesis about our support lines. In the longer run the stock price development is negative but we are positive about a rise up to the resistance level at about 1.61 NOK. If the price reach this level it will be very important to see if there can come a breakout up through this resistance line. We should also mention that if the support line fails the coming days this is a very negative signal.