While the market is not clear at all, today I am going to post the stock that you should be extremely familiar with these days, which had dropped almost 50% in just 3 single trading days.
Above chart is the daily chart of Esprit holdings (0330.HK). I guess you all know the company focuses on retail industry and sells clothes.
After end of 2007, the stock price has been sliding downward gradually, due to investors' shrinking expectations on its revenues, especially after financial crisis. Profits were expected to plunge a lot.
So starting from June 2011, the price moved along the red downward trend line as shown in the chart, and slowly dropped.
Serious slump happened after announcement of its Final results, which their profits were down greatly. Soon after this announcement, the price fell below 10 from 18 in just three days.
Now, it looks like it has bottomed at least these few days, and may rebound. But there are still quite a lot resistances.
For example, the red line provides quite strong resistance at around 12. The 10-day SMA has just successfully resisted the price from spiking.
On the other hand, the previous low at around 7.6 would become next support, hopefully the price doesn't drop lower than that.
MACD and its EMA touch each other, so we still have to wait and see whether there will be a bullish cross or not. If yes, then it's quite likely the price would go higher than 12 as well.
No comments:
Post a Comment