China HongX 130608

China Hongxing finally broke the long term downtrend support (mid grey) and the critical 0.485 neckline support (red --). It is now only the third time, since the beginning of 2007, that China Hongxing traded below the 0.485 neckline. The most recent time was in Mar 08, and before that, we had to go all the way back to Jan 07.

Based on the volume distribution, the next support for China Hongx could be at around the 0.425 level, although the volume support does not look to be as strong compared to the one at the 0.475 level.

If China Hongxing breaks the downtrend support (low red), we could see it testing a new low again. Or we could see China Hongxing staging a rebound if it hits the 0.425 support.



For monday :

Support @ 0.440 (low blue, low red), 0.425 (low grey), 0.397 (red ...)
Resistance @ 0.471 (low pink, mid grey), 0.476 (upp blue), 0.485 (red --), 0.491 (mid red)

Hope you find my analysis helpful. Thank you !!