China Sun
A friend asked me to look at this stock for her friend. I normally don't do this but since I have made a promise, here it goes.
The share came a long way down with a double top. Its move so far has met the objective (grey line) and went further. Looking at how the stock ends, I feel that a wedge is formed on the hourly chart. Base on my measurement, it should bounce back to 0.70 first. Both RSI and Stochastic is showing signs of reversal. So I am pretty positive about this stock at the moment.
The only problem it has is the moving averages which is now on top of its head. They act as resistance to its move, so there is limited space to grow, unless this stock break through the barrier.
posted by denzuko1 @ 1:23 AM
1 Comments:
May take a few days to weeks to construct a bottome such as a small double bottom before any significant rebound for all stocks and indices.
Bottom fishing has been proved to be a silly way to make money.
That's why I have stopped covering individual stocks until certain bottom formations are formed, which I'm sure have to form before significant rebound or reversal, considering the huge free fall or panic selling.
However, no worry, opportunities are plenty once the market finds its solid bottom. All the losses or losses of paper profits will have to come back.
That's my hope.
Wish all the traders to have a good rest before restarting of the trading game.
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