Another 10% (2010-12-23 1997.HK analysis)

HSI managed to go back above 23,000 and did not complete its head-and-shoulder pattern. You can be partly relieved.

Today I found an interesting stock: Regent Manner International Holdings Ltd (1997.HK). The Group is principally engaged in the manufacture and sale of electronic products and the provision of related subcontracting services. (from aastocks.com)



So above is the daily chart of 1997.HK. The stock rose 10% yesterday. As we can see, it reached the last high at around 4.40. After such great surge, we may ask: will it go any further?

This level seems to be a pretty strong one; however, the low volume at lower level showed that corporate investors are still not selling their share, or at least have not started their mass selling yet. They would definitely lift the price again to gain themselves more profits.

The red line connecting the previous lows gives us some idea on the next resistant level, which is around 4.7-4.8. If the stock doesn't not retreat, then we can expect it will at least boost another 10% to around 4.8. Other the other hand, the support level will be at around 4.0.