UniFiber.....*yawn*

It was a few years ago when I first encounter Unifiber. To be more exact, it was 2005 and I was at my Brokerage office after some bank works. If I recall correctly, the closing bell has been sounded. I was sitting at the monitor at the broker office looking at stock movements.

Right next to me was a man whom I guess was a day trader. We started chatting and he showed me this counter. He was entering the orders for the next day. After I regain my data and a new version of Metastock, I took interest in monitoring this stock myself.


Fig 1 Unifiber Weekly chart

At first glance, Unifiber is doing a flag or penant after its spectacular move. The rate at which the stock rise was so aggressive that many seems to have been trapped when it consolidate. The flag stretched and descended for a whole 5 weeks.

At the end of the 5th week, it seemed that the stock is ready to rock again with continuously rising volume each week. Yet after some initial kick start, the counter stalled.

I was monitoring the counter for the last 2 weeks. This counter is no short of buyers. At the same time, it also has a lot of sellers. Everyday you would easily see buyers matching sellers in quantity of 10s of millions units.

It is frustrating to watch as 100s of millions of stocks change hands everyday and yet neither side was depleted. It come to the extend that this stock is very boring because even with its sheer volume of transaction, it has not moved an inch still. Until the last few days, it was even driven to its support level between 0.065 to 0.070. This trend kept going on and on and on. That is until today.

Strange enough the stock was terribly quiet the whole morning and for the first time, buyers out number seller 4 to 1. Majority of trades are done with buyer crossing to sellers. This reminds me of Creative I saw a few weeks ago. Less people are willing to sell this chip!

Looking at the chart, it is at a crucial point where it is at risk of breaking down. With the correction around the corner, the market sentiments might cause this stock to move south, even though there are very little space to maneuver (there are only SGD0.07 left with this stock).

On weekly basis, the indicators still support the chip, as well as the 21 days MA. On the flip side, the 89 days MA is pressing down together with the Gann resistance. The support level for this stock is 0.065 while resistance at 0.10. The flag objective is o.13.