Wednesday, April 27, 2011

Narrow trading range (2011-04-27 3823 analysis)



Above is the daily chart of Tech Pro Technology Development Ltd. (3823.HK). The Company and its subsidiaries are principally engaged in the manufacture and sales of aluminium electrolytic capacitors and V-chip type aluminium electrolytic capacitors. http://www.aastocks.com>

By technical analysis, we can see that the stock price was in trading range for three months, after a pass-through of the red triangle (there was no breakout).

The trading range is around 1.70-1.85. These two levels indicate the boundaries which resist/support the stock price.

We can see that there were a few candles with long lower shadow recently. The price is still beautifully kept within the range, but the long lower shadow implies that the buying-force is quite strong here.

If the price breaks out 1.85, the surge of price could be extremely great. We can keep an eye on this stock.

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