We can see that 7.256 is a very strong resistant for the rise for the stock, as it had been blocking the rise for three times. However, the base for each drop after the block has been climbing upwards and forming the up-trend line. It would be likely that the stock price breaks the obstacle and has a great rise. Together with the fibonnaci fan, which suggests that the price has been supported by the middle line and would go up to the highest line, it is quite clear that we have to buy this stock.
On the other hand, Sinopec Corp. has fallen behind the HSI (in the one-year analysis). And the clear relation, though not very tight, with crude oil future is also a sign as everyone predicts that crude oil future would keep on rising with gold as a result of the weakened dollar.
The expected price is at around 8.0 and expected return is 16%.
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