Simtronics 04.03.2008

Today we have picked out Simtronics as our case for technical analysis. After 30.07.2007 when the stock price reached 6.50 NOK the stock price has been in a weak downward moving trend with a so far low at 3.20 NOK 26.11.2007. Today the stock price ended at 4.82 NOK a change from yesterday of +0.2%. This stock is interesting for many reasons. Early last month the negative resistance trendline was broken and became a support trendline. We also see that there is a support level at todays close at 4.82 NOK. This support level become very interesting as we can identify a double bottom defined from this level. There has been a pullback to the support level and if this support holds there is a potential target at 6.46 NOK defined from the double bottom. But we have to look at the RSI also. Here we clearly see that the RSI trendline could not hold and there was a breakout down though it. On the good side we see that RSI is just about to reach the lower rising supportline. It is therefore very exciting to see if the RSI support will hold the coming days . If it does then the target of 6.46 NOK is very realistic. Our recommendation today is therfore to watch closely the days ahead and if the support holds buy the stock. Set your stop loss just below 4.82 NOK and possibly set your profit target at 6.46 NOK. If you are willing to take higher risk buy the stock asap but keep a tight stop loss. The stock price could fall to 4.55 NOK as a first downward movement if the support level do not hold.