The Group is principally engaged in manufacturing and trading of steel pipes, steel sheets and other products made of steel, property investment and leasing of aircrafts. With the China government pushing the property industry, more buildings are built and more steel are needed. This is one of the factors supporting this stock.
But anyway, let's get back to technical, or candlestick to be specific:
Above is the daily chart of Mayer Holdings. This stock has been moving in a trading range for a long time, though there were a few trials of breakout/breakdown.
One thing to mention is that the price reached its resistant area in early October. This is why I think that the stock still has rooms for further rise. If corporate investors were selling their shares after the jump in mid 2009, the price could hardly been pushed upwards. This might be a signal telling us that corporate investors were trying the strength of resistant at this level, and are preparing to break it.
The immediate plunge following it showed that the resistant power at that level was very great. Nevertheless, retail investors would try their best to sell their shares when the price finally climbed up back to their buying level.
The price just fell back to the bottom line of the channel. It is a good time for us to buy this stock. First, just dont' care about whether it will break 0.78 or not, the price could easily get back to somewhere at 0.70 as it is moving along the channel. Price now is 0.55 and the return is pretty cool.
If the resistant area breaks, then 1.00 and 1.25 would be the next two resistant levels to watch. Ready to take a ride again?
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