Asia Broadband, Inc (OTC:AABB) soared about 238% higher between Oct. 28 and Nov. 2 and has since been consolidating the move by trading mostly sideways.
- On Monday, the stock was looking to print a bullish hammer candlestick, which could indicate higher prices may come on Tuesday.
- Asia Broadband could be settling into a bull flag on the weekly chart but may need more time to consolidate in the pattern.
- The stock is holding above the eight-day exponential moving average (EMA), which indicates the level is a key support. Traders in a position could exit if Asia Broadband falls below the eight-day EMA.
- Asia Broadbands relative strength index (RSI) is extended at about 70%, which indicates further consolidation is needed. It should be noted, however, that RSI can stay extended for long periods of time.
- The stock has resistance above at 23 cents and the 27-cent level and support below at 20 cents and 18 cents.
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