They chose financial independence over home ownership.

This is somewhat extreme but watch how this Canadian couple chose financial independence over home ownership.  They are in their 30s and,...

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China Hongxing: Going higher?

Thursday, July 29, 2010

China Hongxing breached 16c resistance and touched 16.5c briefly.  Closing at 16c, it is still resisted by the declining 200dMA.  This is a long term MA and unless volume expands significantly with any upmove, a breakout from the 200dMA is unlikely to be successful.

If we look at the volume, it has been declining as price tried to move higher in the last few sessions. Although not significantly so, it is nonetheless a negative divergence and calls for caution.

OBV is still rising strongly which means accumulation is still ongoing.  MFI and RSI have both risen high into overbought territories. Momentum is still positive but the risk of a pull back is definitely higher now.

Taking some profits off the table would seem like a prudent thing to do and if price goes parabolic in the next session, I would divest more as parabolas are usually unsustainable.

Related post:
China Hongxing: Target hit.


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