Neptune Orient Lines (N03.SG) rises 2.8% to $2.24, rebounding after 5 sessions of declines amounting to 6.4%, which took the stock to its $2.16 low yesterday, an area where AmFraser’s Najeeb Jarhom says there is multi-year support. 

Jarhom notes the 14-day RSI is around 40.7, its lowest level since April-May 2010’s 25.5% correction, while the stock yesterday moved below the last Bollinger band for the first time since August 2010’s 12.5% correction “when it rebounded quickly above it for a week or so. 

 

Even during May’s 25% plunge, it stayed below the last band for only a week, implying that slight weakness in the coming days should offer trading chances.” 

 

He pegs $2.10 as a good support, the 62% retracement level of the rise from 2010’s low of $1.62 to $2.40, “and a fall towards this is a good entry.”