Ying Li stock price is currently moving sideway and gyrating at about $0.40. Ying Li is trading below the 200D MA and the 200D MA is still on the downward direction. Unless Ying Li share price moves above the 200D, this stock is not interesting both from technical and fundamental point of view.
Ying Li is currently trading in a Falling Wedge. The stock is currently testing 20D and 50D MA resistance, and also 23.6% Fibonacci Retracement Level at $0.438. Breaking these resistance level gives a chance to Ying Li to break the falling wedge resistance at about $0.46. Price target for successful breakout is $0.85. Keep a close eye on the breakout.
Fundamental Analysis (Base on FY2009 closing at Dec 2009)
Comment: Current stock price is super overvalue (PE = 59!!). Poor fundamental because the YOY earning is not consistent & lousy ROA and ROE. Although the company provided a net earning of 50.7% but net cash is negative! If the company is making money, why the cash inflow is negative? I am not wasting my time to dig into the financial report to understand the detail and potential creative accounting.
Technical Analysis
Ying Li is currently trading within a Falling Wedge. Base on current chart pattern, the stock price may rebound from current wedge support if the breakout does not happen. The trading volume is fading for the part 9 months.
Ying Li does not meet my stock selection criteria fundamentally and I will not trade or invest in this stock.