China HongX 270608

There was a great deal of confusion and indecision in the market recently, as characterised by the Long Legged Doji formed for China Hongxing today. As the trend prior to the Long Legged Doji was a downtrend, this would usually indicate that there could be a trend reversal.

Therefore, to confirm that China Hongxing has indeed reversed its downtrend, we would have see it at least opening above its 0.450 closing price on monday, forming the Abandoned Baby or the Morning Doji Star.

Having said that, we must also not forget that China Hongxing is still trading within the downtrend channel (pink), and is also trading very near to the uptrend support (low blue) and lown term downtrend support (low grey).



For monday :

Support @ 0.434 (low blue), 0.416 (low grey), 0.407 (low pink)
Resistance @ 0.456 (upp pink), 0.485 (red --), 0.513 (upp blue), 0.520 (pink --), 0.535 (light blue --)

Hope you find my analysis helpful. Thank you for your support !!