Thursday, September 11, 2008

China HongXing


China Hong Xing has fallen from peak of $1.45 on Oct 2007 to a low of $0.34. That is a whopping 76% drop.

The technical indicator is showing a mixed picture.

The price is closed to the lower Bollinger band and 20 days moving average is showing sign of flattening.

The –DI is greater than +DI which is a bearish signal. However the ADX is also decreasing suggesting that the stock may consolidate in the current region before a new trend develops.

The MACD line is about to cut the MACD Signal line which is a bearish sign. However there is a possibility of a MACD divergence as shown in the MACD histogram. So the bears may cover their shorts and wait for the price action to confirm the next move.

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