Technical Analysis Snap: IHG slides as it falls into loss

11th Aug 2009 14:05

Hotel Group InterContinental's decision to hold their interim dividend, despite a 25% drop in revenue and a $50m loss, has seen their share price take a bit of a hammering in trading on Tuesday. Today's daily candlestick is currently displaying bearish tendencies, in the form of a bearish engulfing pattern. If the market closes at or around these levels, and does not break above the high at 768.50p, then the risk is for a move down towards support around the May and June highs around the 690p area.A break below the 690p area would target trend line support from the March lows, currently around the 634p area. Any break of the high of 768.50p targets the next resistance level which can be found at 823p which is not only the highs from August and September last year, but also 38.2% of the decline from the share price highs of 2007 at 1,453.56p to the lows of March at 433.75p.For periodic TA updates follow me on TwitterAlso read my Investors Guide to Technical Analysis and Level 2