China Minzhong: Looking into the TA crystal ball.

I like China Minzhong's business and I like its prospects. I still have about a third of my original investment in the company which I paid about 58c a share for, having sold the rest for rather attractive capital gains.

In May this year, I increased slightly my exposure to the stock as its share price pulled back to $1.025 and $0.97 per share. The positive divergence between price and MACD has played out and the downtrend has been broken. Currently, the stock trades at $1.12 per share.

Based on Fibo lines, there is resistance at $1.13 and there needs to be a big push up on the back of higher volume to break this barrier. Otherwise, a pulling back to $1.05 or even $0.99 would not surprise me.

I am wondering if we could see the formation of a reverse head and shoulders pattern here which could be part of a bigger bowl formation. Ok, perhaps a saucer formation.

This could pan out to be a very nice trading opportunity. Pardon the pun.

Related post:
China Minzhong: Long black candle on good results.

Vard Holdings: Mr. Market is reacting calmly.

This is a short blog post on my observation that Mr. Market seems to be accepting the bad news regarding Vard Holdings' performance in 2Q 2013 rather calmly. Please refer to the comments section of my blog post on the company yesterday for discussion on its results.

Vard Holding's share price is at 84.5c, down 2.9% or 2.5c as of now. The decline is rather muted, I feel, to what is really a very bad quarterly report card. There seems to be quite a bit of support from buyers, actually. The news might refer to this as "bargain hunting".

It would seem as if Mr. Market feels that the current price level of the stock, for whatever reason, is a fair one at this point in time.

If Vard Holdings' share price should form a lower low, look out for a higher low in the MACD. I am not saying that it will happen but if it should happen, that could be a buy signal.

Related post:
Vard Holdings: Initiating coverage.