China HongX 110708

After hitting a low of 0.420 on 4 jul, China Hongxing traded mostly sideways this week, until today. China Hongxing broke the 1st long term downtrend resistance (low grey), and also the 0.480 resistance (red --).

China Hongxing also tested the 2nd long term downtrend resistance (upp grey) and 0.495 neckline (pink ...), before closing right on the long term downtrend resistance (upp grey).

Having been on the downtrend since the beginning of may, we could be seeing the start of a trend reversal for China Hongxing.

However, whether the reversal would materialise would have to depend if China Hongxing can maintain its uptrend momentum by continuing to trade within the uptrend channel (blue). Of course, its chances would greatly increase if it could also trade above the 0.480 neckline (red --).



For monday :

Support @ 0.485 (upp grey), 0.480 (mid blue, red --), 0.450 (low blue, low grey, blue ...), 0.440 (blue --), 0.425 (green --)

Resistance @ 0.495 (pink ...), 0.500 (upp blue), 0.520 (pink --), 0.535 (light blue --)

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