The 50 day moving average appears poised to make a golden cross, with an almost flat 200 day moving average. This positive signal suggests that the current corrective phase is probably temporary and should be resolved on the upside. There is nothing to suggest that the uptrend is over. Annual momentum is just turning up from oversold lows.
For now, though, short-term indicators are still on their way down. Support for the corrective phase is at $1. Resistance is at $1.40. A successful break indicates a target of $1.80(**Investsgx: If you no idea how to derive target at $1.80, kindly email me at investsgx@gmail.com. I vested today, 25 May 2009 after breakout!**). The market is excited because Ezra’s expertise in sub-sea equipment could be much in demand if Australia’s North-West Shelf is to be developed further, market watchers say.
What Does Golden Cross Mean?(more below)
A crossover involving a security's short-term moving average breaking above its long-term moving average or resistance level.
Investopedia explains Golden Cross
As long-term indicators carry more weight, the Golden Cross indicates a bull market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new support level in the rising market.
Technicians might see this cross as a sign that the market has turned in favor of the stock.
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