technicals getting to iversold territory

With all the recent EPS positive announcements of small takeovers in asia and todays announement of the gorgon gas project contract win for the logistics services and management........the share price has drifted down.

Fundamentally the stock is looking better with all these takeover and contract win announcements. Its a company that historically has generated very good cash-flows so there no need for extra equity.

*** technically the stock rallied from a low of 4.40 to a high of 7.60; Thats a move of 3.20

fibb retracement to the 0.618 level or 0.382 backwards from the 3.20 upmove is: $1.22 backwards from 7.60, or $6.38 level on the chart.......

*****fibb retracement of 50% on the $3.20 upmove is 1.60 backwards from 7.60, or $6

The next level down would be fibb retracement at the 0.382 level of the 3.20 upmove or 0.618 backwards , is $1.97. Take $1.97 from 7.60 and we get 5.63.

So 6.38 has been taken out

Now we at 6.20 which isnt too far off the $6.00 50% retracement level

If $6 breaks id be very surprised indeed! In that case we'd head to 5.63

* those fib levels need to be used in conjunction with looking at minor and key supports on the chart

Im looking for a bottoming effect on chart around here give or take - it might go and test the low 6.00s and bounce, or it may already be well oversold as it broke the key 6.35-6.38 level

Either way getin in at 6.20 means theres little downside and theres more upside if the 50% fib level at around 6 is respected

Drawing in trend lines on the overall uptrend since the bottom at 4.40 or so to the top, it shows that the uptrend line can subsist as long as $6.00 isnt broken over time if we join the low in march to a pontential low at $6

***However, if we join the march low with the late april retracment low on profit taking and extend it up,then the uptrend over these points broke around 6.63.

If you look at the past there were a few closes around 6.10-6.15 area.

According to my trend line analysis 6.23 or thereabouts should not have been broken (using Ig markets quickchartd_

Thats the lowest point that we can go in a parallel fashion blow the original trend line which cobines all low points

So we're at a critical point now

If this level doesnt hold, then the prevailing uptrend from march lows is at risk

If this uptrend breaks, i guess $6 is next level; Bearing in mind that we've closed a few times in the past between 6.10 and 6.15.

trend line wise, we dont want 6.20 to break or MAX $6 which is 50% fib, which could still uphold an uptrend extending from the lows in a parallel fashion

*****bottom line if you buy near the 50% retracement around the low $6s and this key support holds, you have some decent upside.

Doesnt matter if you dont pick the exact bottom, im happy if we reverse at some stage round 6-6.23 mark which upholds an uptrend