Above is the daily chart of BaWang Group (1338.HK). I guess most Chinese are quite familiar with it because of its interesting hair shampoo advertisement by Jackie Chan.
Its IPO was out in 2009 and opened at 2.38. The life-time high is 6.60 in late 2009 and is currently 0.98, what a big difference!
As we can see, starting from 2010, the stock price was moving under bearish trend along the orange Pitchfork. It slid from over 6.0 to 2.0 and broke the IPO price.
Then, there was a bearish flag (shown in green). This flag was a continuation pattern signaling further plunges. Not surprisingly, it kept on moving downwards after 3-month of flag formation.
Starting from April 2011, BaWang moved along the purple Pitchfork. Reaching below 1.0, it sounds pretty attractive to investors/speculators.
The only signal we are waiting for is the break out of the purple Pitchfork or the red down-trend line, which are almost the same. If it breaks out, it is quite likely that it would get back to the IPO price at around 2.38, or even higher.
Yesterday, its volume surged greatly. This shows that there might be some rich investors having optimistic views on it.
So keep this stock under your watch-list and wait for any possible signals.
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