Another watch-listed stock (2010-11-23 Li & Fung analysis)

HSI dropped by 0.35% to 23524.02 today. A inside bar appeared on the daily candlestick chart of the index, which signalled a further drop is more likely to persist. My prediction on the index this week was posted yesterday: Breakdown of HSI?

Today I found an interesting stock: 0494.HK Li & Fung.



Despite of the plunge in the major index, it surged over 2% yesterday. The price broke all three moving averages (10,20,50) at one candle and had a pretty cool power. MACD and EMA showed a bullish cross, giving BUY signal.

It is currently facing a big resistance. This is given by the fibonacci projections using the pennant breakout. 45.1 would be its next resistant level, and if you want to buy it, then wait till the price breaks this level.

I will put it under my watch list.