Power? (2010-06-30 China Construction Bank analysis)

China Mobile showed rise today due to the successful bid for the frequency for mobile television broadcast. However, I would still be bearish on this stock just as what I said in the morning (HKT) as this news will soon be digested.



So let's switch the industry to banks. Above is the daily chart for China Construction Bank (0939.HK). Today was ex-dividend day so CCB went down 20.2 cents automatically. Though there is external factor affecting the chart, we could still try to rely on it and see how CCB would perform afterwards.

As we can see, after the dividend issue, CCB opened low and tried to surge to break that resistance area. However, it still does not have enough power to break it. Tomorrow would be a holiday in Hong Kong. So let's see what happens on Friday. Once it really breaks the area, we might assume it to go back to 6.6. But more likely it would bounce back and reach the red support line, which could probably lead to further breakout and plunge.