Ezra – Trend reversed

Trend: Downtrend, 20ma down, MacD below 0

Support: 2.16, 2.09

Resistance: 2.30 (50 & 100ma close), 2.40 (20ma)

Observations:
Candlestick – 3 black candles.
Histogram – Many R. Bearish divergence is already seen and confirmed
RSI – Slightly above 30%. Bearish divergence is confirmed
Stochastic – Bullish crossover yet to form and is over sold.
Bollinger Band – Out of lower band.

Conclusion:
Ezra unlike the rest of the offshore marines counters, its uptrend failed to sustain and started to change to downtrend. It broke a very strong and important support of 2.30 level this week which caused it to turn downtrend. Hence, it could signify a good opportunity to go on the short side for Ezra.
Based on today’s movement, it had reached the support level of 2.16 and hence, it might not be a good entry to short. On top of that, Stochastic and Bollinger Band is indicating that the price is currently oversold and might have a rebound.
Hence, it will be better to wait for a rebound for lower higher to be formed before initiating a short position. 2.30 level will be a good level to wait for a formation of a bearish reversal candle or bearish signal from indicator.

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