Share price of PPWSA

26/6/2012Highlight: today the price of PPWSA closed at 6,500 riel, 100 riel lower than previous price, for the first time in market trading history. In the 1st session, the price was supported at 6,600 riel with 6,451 executed shares, as some sales still absorbed by buyers at this price; in the 2nd session however, the trading volume resumed to even smaller, and only a few buyers agreed to purchase at 6,600 riel, while some sellers (local investors) seemed to take a priority of selling strategy by putting a little bit lower price than existing sellers (who were offering at 6,600 riel), with the hope that the matched price would be the same at 6,600 riel. Unfortunately, buyers mostly appeared at lower value, 6,500 riel. As a result, the executed price for the close of 2nd was at 6,500 riel due to only 4,200 shares. Beside, one active player – Golden Fortune – joined back the market in buying strategy.
 Predict: Adding to the stock today broke the history supportive line, the technical chart also showed that the red line diverged further from the blue line to the downside, so it can be said as a risk of another downtrend. However, the number of shares (volume) of making the price today falling down to 6,500 riel was very tiny. Generally, a worry should be concerned when the supportive line is broken at significant volume. Thus, the price is unlikely to significantly go down further for tomorrow trading, and it is subjectively believed that 6,600 riel is a supportive price. Nonetheless, wait and see behavior for a confirmation of tomorrow price is the best option.