Sunday, July 11, 2010

Yangzijiang continue to move higher!

Symmetrical triangles for the most part, showing an aimless in direction. The market seems listless in its direction. The supply and demand therefore seem to be one and the same. The upper line(downward sloping) symbolize the resistance and the lower line (upward sloping) is the support. A parallel line drawn above the support is the shorter term resistance. In this case a break above the resistance means there is more upside to be seen.

On Friday Yangzijiang continue to move higher after breaking out of the symmetrical triangle, ended at the highest point of $1.44 forming the second Big white candle. This generally consider bullish, as price closed significantly higher than they opened. If the candle appears during breakout above a resistance area the long white candle adds credibility to the breakout.

Bought some using CSI system at $1.34 three weeks ago, when it gave the orange to blue bar signal. The major trend of this stock is sloping upwards, hence we believe that there will be higher success rate of this stock going higher. Added position at $1.39, will be selling half for short term profit, targeting 1.49. Keep the rest till CSI give sell signal.