SCB : Strong resistance at 97 today
February 11, 2011 Leave a comment
SCB has substantial resistance from 96 or so – it’s current price – all the way to 97.50. We like to use volume weighted moving averages on the hourly chart, and as can be seen below the 18 36 and 72 hour averages give us 94 to 95 as key support today. We think it will struggle to pass 97.50 just yet, and if we were holding from 94 or so, we would take profit at 97 this afternoon if indeed it gets there. The weekly chart does however have promise, but one more drawdown can’t be ruled out here. If we see 87-88 on the charts MT accumulation will be on.
In terms of a trend changing move SCB needs to post a weekly close above 104 to confirm an end to the correction, and in doing so validating 130 as the next upside target.