March 1, 2012 / 9:21 AM / 6 years ago

MIDCAP-Indonesia Bukit Asam technicals suggest end of uptrend

Shares in Indonesia’s Bukit Asam could see the end of their uptrend, technicals suggest.

The coal miner’s stock -- up about 20 percent year-to-date -- is struggling to break its resistance at 21,270 rupiah levels, which is a 68.2 percent Fibonacci level drawn from its 2011 high of 26,000 rupiah in January and low of 13,600 rupiah in October last year.

Trend Intensity, a proprietary Thomson Reuters technical signal, suggests the end of its uptrend. The indicator moved down 2 points to 34 on Thursday, suggesting a potential reversal.

Also, Relative Strength Index (RSI), a momentum oscillator, shows a bearish divergence as the stock has recorded higher highs and RSI has formed lower highs, suggesting less upside momentum.

Moving Average Convergence Divergence has cut the signal line downwards, which is a negative sign.

On Thursday, the stock ended at 20,650 baht, down 0.5 percent.

For a technical chart: link.reuters.com/dej86s

CONTEXT:

Trend Intensity is a Thomson Reuters IFR Markets proprietary tool that identifies daily trends in financial markets by using geometrical averages of historical data. It is an intermediate-term statistical oscillator that indicates trend strength as well as potential reversal, formation or breakout points in a single indicator. (Reporting By Patturaja Murugaboopathy; editing by Sunil Nair)

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