Today I am going to post the analysis of a small-cap stock, with potentially high chance of crazy surge: Morning Star Resources Ltd. (0542.HK). I believe some of you might have already heard about this company as it is quite well-known among the travel industry. But its major activities are actually investment holdings and management. (source: http://www.aastocks.com)
Below is the daily chart of Morning Star.
Yesterday the stock price surged 34.4%. This was actually an extremely beautiful breakout as it just reached the long-term red down-trend line. It's a shame that I did not discover this stock before yesterday's break.
Anyway, there is still chance for making money. 34.4% is definitely not enough for those who intend to push it. In fact, when reaching level around 0.128, there was a strong resisting force and stopped the price from boosting further, creating a long upper shadow.
Support now will be at around 0.101. For the upside, should Morning Star break the resistant level at 0.128, it could reach as high as 0.199. And this is only the second stop. Potentially it can even surge to 0.26 and even 0.30.
But let's just focus on shorter term. If the price exceeds 0.128 and stays firmly above it, we could BUY this stock and target at around 0.20. This is around 56% gain.
For stop, I would recommend 10%, which is at around 0.115.
I will consider putting this stock into JPHK after a long time of cash-holding period.
No comments:
Post a Comment