Thursday, October 1, 2009
China HongXing - Broke all critical support levels!
China HongXing closed at $0.20 with another bearish marubozu candle today! It also broke the uptrend channel support, 50D MA, and short term critical 61.8% Fibonacci retracement level of $0.204. All other technical indicators show weakness of the stock price. It may face further sell down pressure because the stock price is at the bottom envelope of the Bollinger Band and also below the Parabolic SAR line. It will be critical to see whether China HongXing can bounce back from $0.20 to $0.205 level in the next few days. The next critical support level at $0.17 to $0.18.
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scary ! lucky dun have :)
ReplyDeleteI entered the trade when it was at the channel support level. Unfortunately it broke out from the channel support and now I got stuck. Since the stock price is still under the NAV and intrinsic value, I plan to hold it for medium term. I will buy more to average down if it drops further. :(
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