High potential (2010-07-26 361 Degrees analysis)

Today I would recommend a stock with high potential --- 361 Degrees (1361.HK). This company is engaged in manufacturing and sales of sporting goods, and is one of the partners/sponsors of 16th Asian Game in Guangzhou. The group entered into an agreement with CCTV to be the title sponsor of China Table Tennis Super League from 2009 to 2013 and cooperated with QQ.com , a large instant messaging service network in Asia, Sohu. com and Xiaonei.com to promote internet sports programmes.

Looking from the fundamental side, we can easily find that 361 Degrees carry great potential to develop sporting goods in China and is very likely to succeed due to its aggressive approach and the increasing demand of these products in China, when people in China are getting wealthier.



From technical side, it is forming a symmetric triangle, and has just rebounced from its triangle bottom. This would possibly lead the price to surge greatly. If 361 Degrees breaks the triangle from underneath, the first resistance would be at 6 but is likely to break too.

Combining both fundamental and technical, then we can expect even breaking 6.7 (last high) when Asia Games take place.