China Construction Bank (2010-06-04 0939.HK analysis)

Hang Seng Index closed down a little today. The somehow horizontal moves these days show an unclear view on the future movements of the global markets. Any pieces of breaking news would lead to a large fluctuation. Below is the daily chart for CCB (0939.HK).



I have drawn two trend-lines, one longer (red) and one shorter (green). They give different interpretations. Also, Stochastic and MACD show different signals too.

However, combining all these indicators, I would predict a slow drop in price of CCB following the green line and might eventually break it. Although in MACD, the two lines cross, they did not cross at low levels, but at around 0. This weakens the bullish signal given by MACD. Both lines in stochastic is heading downwards. This signals a further drop later.

CCB price might rise a bit to the red line. That would be a good place to sell.