So we did feel how powerful news are. BaWang is a quite new shampoo company with famous actor Jackie Chan as its advertising spokesman. It is famous for its use of chinese medicine to simulate users' hair cells to grow more hair. And... o well these are not really important at all. BaWang shampoo was found to contain carcinogen which may cause cancer. The stock price of Ba Wang Group (1338.HK) dropped till 14.4% and was temporarily suspended.
So get focused on the above daily chart for Ba Wang Group. After its IPO in last year, it kept running upwards till around 6.5. Then it was fluctuating in the next few weeks. So let's determine whether the stock enters stage of distribution or not (by rich guys). We could see that volume was not large in last few months. There was one day during which the volume surged for more than ten times. We may conclude that the rich guys are still holding at least some of the stocks. Therefore, they would not like to see a continuous decline which make their profits lower and lower, and they do not like to push the stock price by bidding more too. News is a very good way to "move" the price. I would predict that when Ba Wang Group resumed, the stock price would rise crazily.
The first resistance is at around 6, then 6.5, and if it breaks, the upside would be hard to predict. But if the stock drops back the cyan pitchfork as well as the red uptrend line, we would have to analyze it all over again.
No comments:
Post a Comment