China Minzhong: Pushing higher.

To any chart watchers, it is obvious that China Minzhong's share price has broken out of resistance.  From here the immediate resistance is provided by the declining 100dMA which is currently at 73c. It could approximate 72c in the next few sessions.

Overcoming the 100dMA could see a test of resistance provided by the 200dMA which is also declining but more gently so. The 200dMA is at 83c. The last time the 200dMA was tested was earlier this year in February.

With all the momentum oscillators up sharply, the worst is over for China Minzhong's share price, it would seem. MACD suggests a return of positive momentum. MFI suggests demand is stronger. OBV suggests robust and continuing accumulation.

It has to be said that a longer term downtrend that started in early 2011 is still intact. So, traders ought to be careful and watch the longer term resistance.

Related post:
China Minzhong: Crossroads.

Sound Global: Retest of resistance likely

On 7 July, I said that the technicals suggested it could be time to sell Sound Global's shares and that if price were to move higher, it would be a slow grind upwards. This picture has, essentially, stayed intact till now as its share price has been stuck at resistance, not being able to move convincingly above 61.5c, a many times tested resistance in the last few months.

Mr. Market is feeling slightly bullish of late and, so, could his attention move to Sound Global?

The company's fundamentals are strong and with sentiments improving, there is a chance that its share price could move higher. A retest of resistance at 61.5c looks likely. However, whether resistance could be taken out would depend on volume which has been rather low.

After 61.5c, the next major resistance is at 68c.

Related post:
Sound Global: Would I buy now?

Sound Global said it has agreed to undertake the second phase to expand the existing capacity as well as to increase the existing discharge standard of the wastewater treatment plant BOT project in Jingbian County, Shaanxi Province, China.

Sound Global wins Shaanxi wastewater treatment plant BOT project for $16m
Friday, 03 August 2012

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