Above is the daily chart of 361 Degrees (1361.HK). The group mainly focuses on manufacturing and sales of sporting goods.
After climbing as high as 8.10 in September 2010, the stock price just kept on sliding and reached as low as 2.91 in August 2011.
As shown on the chart, 361 Degrees was moving along the red down-trend line, and could not break this line. We can treat the line as a medium term resistant to the price.
Currently the stock price reached this line again. Starting from August 2011, this stock was boosting and showed a strong bullish trend. Could this short-term bullish trend lead the stock to undergo a medium term bullish trend?
The answer would be given shortly by the price. These few days we have to keep watching this and see whether it will break the red resistant or not.
If break out confirms, then the price would be up to around 5.64, which is 161.8% retracement level. This means around $1 profits.
First support is provided by the Pitchfork at around 4.26, and the next one would be 61.8% retracement level (which is around 3.95).
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