Wednesday, April 23, 2014

Shareinv Article - Will China Merchant Pacific Break Out To Higher Ground?

China Merchant Pacific (CMpacific) is one of the leading toll road operator in China and is also a subsidiary of the China Merchant Group.
CMpacific is also well known for dishing out dividends consistently. Its dividends are paid out half yearly in June and December. At its current share price, the dividend yield is 7.4 percent.
From a technical view on the weekly chart, CMpacific has been rising on a smooth uptrend since 2011. The uptrend will remain intact as long as its share price holds above the 50-week moving average and this mark the strong support level at $0.90.
Chart On China Merchant Pacific
I am optimistic on this stock as the share price recently broke out of the ascending triangle pattern and its 52-week high. This means that the existing sellers at $0.95 have been bought over and the price is ready to trend higher now.
The strong resistance at $0.95 will now act as a strong support. The next resistance we see will be the psychological level of $1.00. If the price can break above $1.00, we will see CMpacific at its all-time high at $1.05.
Although this could be the good stock with good chart pattern, due to the low liquidity on this stock, CMpacific is more suitable for a mid-to long-term investing rather than a short-term trading.
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