Monday, May 21, 2012/ Proshare Research
 

IHS Plc experienced continued bearish sentiments in the week to record -4.7% loss as against -4.9% loss recorded in the previous week - sustained and growing sell tendency was observed towards the stock in the week as the bearish volume topped market volume for the week.

The price movement pattern suggests no bargain drive position as revealed by candlestick, indicating the strong bearish tendency, buttressed by MACD. The price position below bottom Bollinger band indicates a good chance of continuing the downtrend while the stock remains bearish in both short and mid-long term period as revealed by its price moving average.


To buttress this point, the RSI revealed the depressed posture of the stock as far below the oversold region while the bearish volume experienced a significant surge to close at 347.32million as against 225units traded previously.
 

Similarly, the Money Flow Index (MFI) sustained a prolonged negative position, indicating no inflow of cash into the stock over a long period amid continued sell-off.
 

However, the sudden big volume, which is the highest volume traded in the last two years, may signify fresh interest towards the stock as some investors might be taking advantage of its depressed posture which may encourage a short term trend reversal, though the reliability is low.

Technical conclusion on sentiments: The stock is in a bearish and depressed mode with a corresponding high chance of continuing the trend; amid investors’ sustained sell-off tendency. However, depressed price posture might incite short term trend reversal as the new big volume signifies big interest. The chart below shows MACD, candlestick, RSI and volume analysis.

http://www.proshareng.com/quote/IHS
 

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