Sakari Resources is a coal mining company based in Singapore with 2 mine operations in Indonesia. Since July last year, its stock price has been on a heavy downwards trend due to market weakness coupled with China’s slowdown that has caused an even greater drop in prices lately. The raw materials FTSE index has been the worst performer YTD compared to other sub-indices and the STI index.
Outlook – Go on short, break below 1.16 possible. Sakari prices broke through a major resistance diagonal drawn from June 2012 recently. It also just crossed the 20d MA line and headed for further downside. Stars are aligning for this stock to go further down together with even more market instability in the week ahead. Note that Sakari reports their earnings on 27 July Friday so perhaps the market is signalling/betting on poor results given the bad 2nd Quarter showing from …