China HongX 050908

The last time China Hongxing hit a low of 0.345 was on 26 aug, which then saw it going on a 6 day rise and hit the 0.405 resistance (lightblue --), before collapsing yesterday, breaking the 0.375 support (lightblue ...).

Today, China Hongxing gapped down and formed a Doji Star below the 0.355 support (pink ...) and 1st long term downtrend support (mid grey). There is a possibility that an Abandoned Baby or Morning Doji Star formation could form, both indicating a major trend reversal.

For that to happen, China Hongxing would have to open at least above the 0.355 support (pink ...) and close high, forming the Morning Doji Star. If China Hongxing gaps up and closes high, this forms the Abandoned Baby.

However, if China Hongxing weakens futher, the 0.300 level looks likely to be the next support.



For monday :

Support @ 0.350 (mid grey), 0.345, 0.305 (low grey)
Resistance @ 0.355 (pink ...), 0.375 (blue, lightblue ...), 0.385 (upp grey)