Limited downward pressure allowed China Hongxing to bottom at 14c. Its price made a bullish move up to touch a high of 16.5c before closing at 16c on 7 April on the back of very high volume. The 20dMA has been rising gently and the counter has been trading above it since 7 April. Immediate support is now at 15c, provided by the 20dMA. Immediate resistance is at 15.5c, provided by the descending 50dMA. Since 8 April, volume has been reducing as price was capped by the declining 50dMA. Yesterday, volume expanded as price broke resistance to touch 16c but ultimately closed at 15.5c. The MACD has been rising and seems poised to cross zero to herald the return of positive momentum. Strictly speaking, I do not see a buy signal yet. However, technically, this counter might be prime for a breakout. A breakout would see the 100d and 200d MAs acting as resistance at 17.5c and 18.5c respectively. Might the current setup be good for a trade? Chart:
singaporeanstocksinvestor.blogspot.com/2...me-for-breakout.html
Closed 0.5c lower on lower volume. Signs are still good that this counter is probably prime for a breakout. Price action is now trapped between the 50dMA (15.5c) and the 20dMA (15c) in a crab-like pincer. Going by the rising MFI and OBV since 30 March, the chances are good that price is likely to move higher.