NEW YORK – Shares of UBE Corp ended Thursday’s session with a significant loss, with price action indicating a complete lack of buying interest and pointing toward a likely continuation of the downtrend when markets reopen next week.
The company’s stock, trading in Euros, finished the day at 13.20 EUR, a sharp decline of 0.20 EUR (1.49%). The session was a picture of bearish dominance from start to finish. The stock gapped down considerably from its previous close of 13.40 to open at 13.20.
In a powerful display of seller control, the stock failed to move even a single tick higher. The day’s open, high, and low all registered at the same 13.20 level, showing that sellers were in command throughout the entire trading period and no buyers emerged to challenge the lower price.
Outlook for Monday:
The technical picture for UBE Corp is unequivocally negative, setting clear expectations for the week ahead.
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The Bearish Case (Market Down): This is the overwhelmingly probable scenario. Closing at the absolute low of the day after a significant gap down is one of the strongest bearish signals a stock can give. It indicates that selling pressure is heavy and is not yet exhausted. The path of least resistance is clearly to the downside, and traders should expect the stock to test lower support levels at the start of Monday’s session.
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The Bullish Case (Market Up): The case for a bullish reversal on Monday is exceptionally weak. For the trend to change, the stock would require a dramatic and unexpected surge of buying interest to absorb the heavy selling pressure. Without a significant positive catalyst over the weekend, any attempt at a small opening bounce would likely be met with renewed selling from those who established positions on Thursday.
Investors should exercise extreme caution. All technical indicators from Thursday’s session suggest that the downward momentum in UBE Corp is strong and likely to continue into Monday.
