Global Geo Services 22.02.2008

The stock price for Global Geo Services has been in a downward movement since end August 2005 when the stock price was as high as 15.19 NOK. A so far low since end August 2005 was reached January 22nd this year when the stock price was as low as 1.17 NOK. After that the price has raised and ended today at 1.68 NOK. The latest stock price movements has caused several support and resistance levels to be developed. We find the first resistance level at 1.71 NOK and first support level at 1.66 NOK. RSI is in a weak falling medium long term trend with a positively short term development. RSI is still above 50 which is positive. We also see a divergence between RSI-lows and price-lows which is also positive. It seems like there is a good chance for the resistance level at 1.71 NOK to be tested the coming days. If the resistance level is broken next resistance level is at 1.80 NOK. As RSI is quite high in its trend channel there is plenty of room for a fall in stock price meaning that the risk is currently high. If you want lower risk wait until the falling RSI trendline is broken before you buy. If there is a fall in stock price the days to come and the support level at 1.57 NOK still holds, 1.57 NOK could be a good entry.