Above is the daily chart of China Construction Bank (0939.HK). This might not be a perfect head-and-shoulder reverse pattern because of light volume at break out, but we can still take reference of the levels suggested by it.
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Tuesday, February 14, 2012
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ReplyDeleteTested for 9 days still not able to break 6.40 resistant level. For short term, I think price is softening. Other consideration include market sentiment where ^HSI is still testing to break 21,000. Buyer should wait for clearer direction.
ReplyDeleteHi Hwang,
ReplyDeleteI agree with your point that the surge has softened and it may take some time to regain strength. We should also take HSI into consideration when analyzing this kind of highly-correlated stocks. My view is that if CCB is reaching the green neck-line at 6 again or breaking 23.6% level at 6.4, it might be a good chance to buy for short-term trading, buy-and-hold is not a suitable strategy these days.
Appreciate your comment and hope you would keep on sharing with me.
Jeffrey
Very good analysis. Let's monitor its movement and see if we are correct.
ReplyDelete