On Wednesday, Yangzijiang re-tested its major support at $1.50 and closed at $1.50 with LOW volume of 10.4 million shares traded.
A black candle sticks with long lower shadow similar to a “Hanging man” affirms on the lack of conviction for this recent break out.
Both RSI & MACD are bullish as MACD perform a “golden cross” recently.
Important Resistance of Yangzijiang: $1.56
Immediate Support of Yangzijiang: $1.50
Currently prices are well above 20/50/100/200 days MA.
Although the prices remain trending in the rising channel, we would not suggest buying now since Yangzijiang seems to display signs of weakness.
In fact we would urge investors who are vested to look out for the strong support at $1.50 and sell once support breached at high volume.
On Wednesday, Wing Tai closed at $1.71 with LOW volume of 1.55 million shares traded.
A candle sticks with long lower shadow indicates the profit taking of the investors.
RSI & MACD are neutral as both indicators continue to trend sideways.
Important Resistance of Wing Tai: $1.75
Immediate Support of Wing Tai: $1.67
Currently prices are supported by the technical/50 days MA at $1.67 and resisted by technical/20/200 days MA at $1.75.
Since Jan 2010, Wing Tai has been forming a falling trend channel (Red Line) with “Lower high” and “Lower Low”. Therefore we would not encourage any long term investors to enter this counter.
In short term aspect (Pink line), Wing Tai remains in the rising channel though it will be bearish once the critical support at $1.67 is breached at high volume.
If interested in fundamental of the company then we would suggest entering when $1.75 resistance is broken at high volume
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