Moneysupermarket.com-- Week 23 Moo River Watch (7th Jun to 13th June 09)

Moneysupermarket.com

Renko study

Yearly: What a tremendous bear market on this one for the past few years, it feels the same as looking at the old dot com stocks once we went past 2000. The only way was down and has been down, will it be continuing downwards?

Quarterly: at last, we are having a bounce here, but the rising angle is too little to merit a serious concern for bears, though one has to remember all great things come about one step at a time;

Monthly: we had two bounces, now it seems we are tiring a bit, but this is not the right time to stop, we really need to be over 60 pence on Renko to be on the safe side. The shape of the two bounces does have the potential to be a W there. The structure is such that it is more like to be a W than an M, though we do have to wake up to that fact asap.

Weekly: if you draw a few lines there links tops etc, you will realise that it has made a series of manoevour to reduce the angle of the bear market and we have finally escaped from the bear claws. Either we have enterted a flat bullbear battle zone, or we have just has Wave 1 upwards, now are in the process of Wave 2, pending a massive Wave 3 up to shape up an upstream moo river there.

Daily: you can see we are in a basing downstream moo river with three potential upperbanks as resistance, 60 pence, 75 pence; 100 pence, with possibility for a final plunge towards 40 pence. At this moment, the market is still keeping mum, not telling us what it wants to do. So let's go over to the moo river watch, to see whether that gives us further clues.


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Moo river watch

Yearly

Price Chart: What a calamity from 2007 when it made its debute! Well, all dot com investors must shiver at the graph, which must remind them of many similar charts for the dot com stocks before, pump big and dump big. There is only one question to mind, have we hit the value line or rock bottom yet?

Force index: this one has been bouncing up, indicating some kind of bullish divergence here.

Quarterly

Price chart: the candle pattern here seems to be a reveral pattern, though needing a bit more upside and a strong finish to this quarter to confirm it. We have certainly escaped the downstream moo river and are determined to stay out of it.

Force index: it has carved through 0 from negative territory, so the bulls are waking up to the value in this share perhaps.

Monthly

Price chart: we are not really out of the bearwoods yet, we need to break 72 pence to be in the safe hands of bulls.

RSI: it is like a boxer, being knocked down a few times, not being knocked out, so it is trying to get up from the floor and stand up to fight again.

Momentum: it has rallies up in a V shaped rally and now we have had a big W, if that one fails, it could hurt the bulls a lot; if this W extends the run, this share will have more bull legs to run further north;

Weekly

Price chart: this is the second time we display this type of pattern, which has the potential to W up. But last time, it failed miserable in 2008, only to come down much further. This time, it might work, with a very flattened bollinger lowerband as support. Can we get over 70 pence? This is the challenge.

We are all over the places on the momentum indicators, still very weak in the bull legs and late bears are still growling.

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Overall, we have escaped the long running sharp downstream moo river, but we are not out of the bearwoods yet. The best way for this share is to spike up and penetrate the downstream moo river in one go to kick off an uptrend. There is hope and the challenge of either a big up or a big down is to be expected shortly.


Good luck.