China Hong Xing was hammered this week. The stock closed at 0.45 on Friday, a loss of 20% in 5 days. That is a significant profit for the bears.
RSI is in extremely oversold levels. There is no sign of rebound from the price chart.
ADX is above 20 and with –DI greater than +DI, this point to a downtrend. The –DI is now greater than 40 level. A similar pattern occurred on 22 Jan 08 and at that time we see the stock rebounded from a low of 0.48 to a high of 0.74 in 3 trading days.
MACD made a crossover its signal line on 13 May 08 and the stock has since moved from 0.68 to 0.45.
The stock is approaching the support of 0.405 which is the low made on 20 March 08. It looks like the best time to short this stock is probably over and a rebound is near. Given the positive close on Dow on Friday, Monday should be positive for this stock.
RSI is in extremely oversold levels. There is no sign of rebound from the price chart.
ADX is above 20 and with –DI greater than +DI, this point to a downtrend. The –DI is now greater than 40 level. A similar pattern occurred on 22 Jan 08 and at that time we see the stock rebounded from a low of 0.48 to a high of 0.74 in 3 trading days.
MACD made a crossover its signal line on 13 May 08 and the stock has since moved from 0.68 to 0.45.
The stock is approaching the support of 0.405 which is the low made on 20 March 08. It looks like the best time to short this stock is probably over and a rebound is near. Given the positive close on Dow on Friday, Monday should be positive for this stock.
2 comments:
Thx for the update...
Today (16 June), it ends with the doji!!
"too late to short and too early to buy" for me!!!
gr8 work...
STX PO gave such a good SHorting opportunity
http://i32.tinypic.com/2zq8sq0.png
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