GGS 02.04.2008

Global Geo Services has since 23.01.2008 been in a more or less upward moving trend. The low 23.01.08 was 1.21 NOK but the stock ended at 1.60 NOK today which is down 1.8% from last trading day. Looking at the ADX chart we clearly see that the stock is moving more and more into a trading range. The ADX indicator shows a value as low as 8.6 which is very low. We also see that +DI and -DI is moving very close to each other. This is something that we often see before major movement in a stock price. The natural question to ask then is if we can see if there could come an up or down movement i price? As always with stocks it is difficult to tell what will happen but as ADX is very low we know that we can rely more on the actual value of RSI. RSI value is about 46 so there is no clear indication that the stock is either overbought or oversold. On the other hand we see that RSI is in the bottom of its trend channel where it has support from the upward moving support line. The support and resistance lines in the trend channels for both RSI and price coincide very well meaning that there could be a reaction upwards from this support level. If we get an upward movement the trend channels leaves room for a rise to about 1.90 NOK at first. Some support and resistance levels to be noticed along the way is 1.65 NOK, 1.70 NOK, 1.77 NOK and 1.87 NOK. From the trend channels this stock can be a good buy just now as it seems that the support level holds. On the other hand if there is a fall in stock price put your stop loss at about 1.50 - 1.55 NOK to secure your money.