Notwithstanding the sea of red in the equity markets for the past couple of days, these two stock charts caught my attention. They are Best World and Tencent.

Best World – retreats back to double bottom neckline

Best World has dropped 9.2% from an intra-day high of $1.52 on 4 Oct 2018 to close $1.38 on 11 Oct 2018. Based on Chart 1 below, Best World is retreating back to its double bottom neckline of around $1.39. This seems to be a classic “break and re-test” resistance turned support pattern. There is a confluence of supports (50D, 100D and 200D EMA) which increases the probability of the neckline holding. With the exception of 20D EMA, the other EMAs are rising with golden cross formations. Overall, the chart still looks positive despite the 9% slump and the eventual technical measured target remains valid at $1.59. …