The Shaw Group (SGR) : Bearish Indicators

I would have thought that counter like SGR will be a bullish play (assuming that they will benefit from infrastructure spending).

However, my charts doesn’t say so. Ichimoku has some bearish indicators on Shaw Group.

1. Tenkan sen cuts Kijun sen on June 24 and penetrated the kumo support.

2. We can also see the 50 day EMA and 200 day EMA is forming a resistant at above the current price level.

3. On the Weekly Chart, we can see that the kumo is also acting as a resistant.

4. Daily chart is showing that the leading kumo is twisting and trending downwards; a sign that it is a bearish play.

5. Support is sighted at around $26.50

2009Jun-Shaw Group Inc-800x600

2009Jun-Shaw Group Inc-800x600_Daily


Shaw Group Inc. (SGR)

With the recent rally, SGR continues to trade within its $25 – $30 range.

The recent selldown has seen SGR prices holding well at above the $20; a level depicted by the kumo as well.

We can also see that the current kumo is sloping up; a suggestion that it is trending upwards

Tenkan sen and Kijun sen cross has also been sighted on 18 March with the price level above the kumo. This is good signal to suggest that SGR is poised for a long term uptrend.