Could SAI Global Limited Change Direction After Today’s Gap Down?
August 30, 2016 Marie Mckinney
The stock of SAI Global Limited (ASX:SAI) gapped down by $0.06 today and has $3.12 target or 9.00% below today’s $3.43 share price. The 9 months technical chart setup indicates high risk for the $732.07 million company. The gap down was reported on Aug, 30 by Barchart.com. If the $3.12 price target is reached, the company will be worth $65.89 million less. Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 1.58% or $0.05 on August 30, hitting $3.43. About 1.20 million shares traded hands. SAI Global Limited (ASX:SAI) has declined 14.89% since February 2, 2016 and is downtrending. It has underperformed by 29.43% the S&P500.
(http://www.consumereagle.com/could-sai-global-limited-change-direction-after-todays-gap-down/185964/)
