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Back in Singapore and China Hongxing.

Wednesday, January 12, 2011

I am back from a short holiday. Feeling somewhat exhausted. Probably got much more sun and walking than I am used to in Singapore but I guess it is not a bad thing. If you are wondering where did I go, I went on a cruise with my parents on the Star Virgo. Very enjoyable, as usual, but the internet connection sucks.

The internet connection on the ship is via satellite and it took 5 minutes to load a page! The service was charged at 23c per minute. So, imagine how costly it would be if I were to log on for an hour and, of course, would get to see about 12 pages only! Anyway, I am back at home now and thankful for my ADSL modem.

I am blogging about China Hongxing simply because I received two comments on this counter while I was away. I am not vested.

The wickless white candle formed on 7 Jan was very bullish but there was no follow through and on 10 Jan (Monday), a doji was formed on the back of high volume, signalling indecision. However, the fact that price did not fall below the immediate support provided by the 100dMA at 17.5c  was encouraging. The bears did not win the battle.

In the following two sessions, dragonfly dojis were formed on low volume. Both bulls and bears are being cautious. So, good time to go long? Well, the higher lows on the MACD, MFI and RSI are obvious. There is positive momentum. RSI is overbought but that could stay overbought for a while more especially as we do not see the MFI in overbought territory. Look at the OBV and we do not see any distribution.

In case price breaks immediate support at 17.5c, a longer term and stronger support is at 15.5c. This is where the rising 200dMA is approximating and it is also where the trendline support is found. 15.5c could provide a much nicer entry level for long only traders. Of course, a further strengthening in price could still see 20c tested.

Related post:
China Hongxing: Eyeing 20c.


ryan said...

Charts aside, why hasn't the stock performed? Looks like it completely missed the entire bull run. Chart looks like a 'jilted lover' kinda chart.

AK71 said...

Hi ryan,

I am sure this counter is not alone and I do not have the answer. Sorry to disappoint. Mr. Market can be quite cryptic. :(

la papillion said...

Hi AK,

Welcome back :)

The weather had turned cold since you left here, so don't fall sick like me..achoo..sniff sniff..cough cough..

AK71 said...

Hi LP,

Thanks! It is good to be back. :)

The weather has been freakish. I saw news on the flooding in Australia and Brazil.

The humidity level in Singapore, apparently, is hardly 80% and the air temperature in the day is something like 26 degrees celcius. Amazing.

You drink lots of warm water and get well soon, ok? Wear a pair of socks to sleep. It helps. :)

Anonymous said...

Hi AK,

26C? We are having 10C in HK at the moment! Hey I'm bringing my parents to a Singapore trip after Chinese New Year. Looking forward to warmer weather and some good food :)


AK71 said...

Hi Victor,

10 deg C? Really? Is that much colder than Hong Kong should be this time of the year? I thought it should be 14 or 15 deg C.

I am going to Hong Kong end of the month for work. I might have to bring some thermal clothing after all.

Have a good trip to Singapore. We welcome you. Please spend more money while you are here. ;)

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