Tea with Mark Mobius: Focus on long term goals.

Mark Mobius, chairman of Templeton Emerging Markets, says as the Fed tapers QE and eventually raises rates, volatility will probably increase, but investors should keep focused on long term goals instead of trying to time the market.

"We are telling our investors to sit back, relax and ride it out."

Templeton is also a substantial shareholder of China Minzhong with a stake in excess of 11%.

Related posts:
1. Be comfortable with being invested.
2. China Minzhong: Looking into the TA crystal ball.

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.