The stock of property firm Belle Corporation (stock symbol: BEL) has slowly zigzagged higher since my March post, but it slid continuously since the strong defense made by bears around the 6.00 level.
Price gapped down in the process, disrespecting the 5.00 level along the way. Add to that a recent failure to secure a foothold above the 5.00, and this indicates a much more bearish tone than usual.
The August 29 low sits at 4.25. Critical support area is at 4.00-4.50. Beyond this, BEL would be bound for prices unseen since 2011. Buyers must push through the 5.00 level, a gap, and then the stubborn resistance at 6.00.
The Money Flow Index (MFI) is flat below the 50 level.
TP’s Advice: Avoid this stock for now. BEL holders must watch 4.00-4.50 and make appropriate decisions if necessary.
Do you have BEL in your portfolio? Share your thoughts below!