Yes, its my very first post here. I was influenced by a life long friend to set up a blogging website to share my views both fundamentally and technically on selected stocks within my watch list to everyone.
As we all know, Yangzijiang has been recently included as one of the indices within the STI. Due to the sub-prime crisis and a possible recession within the United States, almost every stock exchange in Asia has been affected greatly. Yangzijiang was not spared. For 3 consecutive trading days, this counter was experiencing heavy sell-down until reaching a consolidation level only on 16th January. Overall, it has fallen from a high of 1.91 to 1.39 in 5 trading days. That is a whopping 27% fall. Perhaps the two reason why the sell-down has stopped was due to a possible Federal rate cut at the end of this month as well as a proposed share buy back from the top echelon of Yangzijiang announced on the 15th of January.
I am now here to provide you with a little technical analysis for this counter. The current support and resistance level is displayed with a chart on your top left for your reference. The top line drawn = Resistance, the bottom line = Support.
Note that i have also included the Technical reason for the heavy sell-down on the 11th of January. The previous Support of 1.84 was broken on that day itself before the massacre began. It has now reached a new level of consolidation.
Points to take note =
*The current support level of 1.39
*It is important to know that usually a massive sell down starts after the support level is broken.
*Always buy on support.
Have a nice day and let the trading begin.
2 comments:
Hi Sam, good to know u're starting something like this. Perhaps my 2 cents: we can look at the Baltic Dry Index (BDI) to see the decline in Yangzijiang's stock value. Dry bulk shipping rates have fallen sharply lately and this has affected demand for dry bulk carriers made by Yangzijiang (and other bulk carrier manufacturers).
Take a look here for a nice intro on BDI.
Keep up the good work, I hope to see this becoming a regular feature =)
- Jiawen
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