On 15 Feb 2012, we advised traders to accumulate GreenOcean's shares when the stock was in consolidation mode and since then,  its share price  has reached our RM0.245 and RM0.30 upsidetargets. Nevertheless, there is  now  a strong possibility that Green Ocean willviolate the steep short-term uptrend line after creating a classic 'ShootingStar' which was accompanied by abnormally high volume on 22 Feb 2012.  Hence, traders should sell Green Ocean'sshares if the price closes below yesterday's low of RM0.29 as the steep uptrendline should be violated by then. We are eyeing the RM0.225-RM0.25 area as theinitial downside target, followed by the RM0.17 level. 

On 22 Feb 2012, Green Ocean created a classic 'ShootingStar' which was accompanied by abnormally high volume. Since the bearishreversal  pattern was created after itsshare price shot up from RM0.07 to RM0.38 in just 5 weeks and the candlestickpattern was accompanied by very high volume, we believe the reliability of this'Shooting Star' is rather high.

The shift in trend will be confirmed should the steepuptrend line, as highlighted in the above daily chart, be violated. Hence,traders may want to prepare for a potential breakdown ahead. We advise tradersto sell Green Ocean's shares if the RM0.29 level is taken out as the steepdowntrend line should be violated by then. We are eyeing the 'Downside Gap'range of RM0.225'RM0.25 as the downside target. This range also providesimmediate strong support for the stock. Should this area be taken out, look forthe share price to potentially retrace to the RM0.17 support level.

If the steep uptrend line is not violated (which we think ishighly unlikely), this simply means that the current steep uptrend will extendhigher. If this happens, look for an immediate resistance at the RM0.345 level,followed by the RM0.38 level.

Source: OSK188