Monday, June 04, 2012/ Proshare Research

TRANSCORP experienced continued bargain tendency and sustained positive sentiments in the week to record +7.8% gain as against +23.3% gain recorded in the previous week - the stock appears to be losing uptrend momentum amid weak performance even as the stock recorded 73.21% gain in the last five weeks.
 

The stock remained in bullish trend, trading above both its short and long term postures as revealed by price moving average while the bullish posture of MACD confirms same.
 

However, the candlestick pattern (Black Marubuso) revealed a strong sell tendency in the last session as bargain drive appeared weak due to the overbought posture of the stock. To buttress this further, the sharp fall in price uptrend momentum as revealed by RSI confirms this; just as a similar trend was observed in money flow index (MFI) as distribution dominated the trading pattern, buttressed by the huge bearish volume recorded.

 
Technical Conclusion on Sentiments: The stock may extend the downtrend further as short-termist (profit-takers) would appear to be in control of the stock. The chance for a short term price correction has increased due to the prolonged overbought posture of the stock. The chart below shows MACD, candlestick, RSI and volume analysis.  

http://www.proshareng.com/quote/TRANSCORP

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