Norske Skogindustrier 28.03.2008

Norske Skogindustrier is a company that are troubled with high debt. This is easily seen in the chart where we see that the stock price has fallen almost constantly since beginning 2007 when the stock price was as high as 118.25 NOK. Today the stock price stopped at 18.00 NOK after being as low as 16.45 NOK 17.03.2008. The question now is if the stock price will rise again soon? From the trendlines we have drawn in the price chart it seems like there is a possibility for the stock price to rise up to about 20 - 21 NOK. At this level we find the falling resistance-trendline. Looking at the RSI chart we also see from this chart that there are room for a rise to about 20 -21 NOK. ADX shows high values so we should not pay too much attention on the actual RSI value of 31 which could indicate that the stock is oversold. The RSI trend-channel drawn in the RSI chart is coinciding with the falling price trend-channel. The stock can be a short term trading object as the stock price could rise to about 20-21 NOK at first. There is a resistance level at about 18.10 NOK so you could buy the stock if there is a breakout from this level, but remember to place your stop loss not too far down at the 17-NOK level. A small support level is also present at about 17.10 NOK. Overall the stock is still in a negative trend but there are some possibilities for doing small successful trades.