China Fishery has a breakout from triangle and close the session at $1.28 with a hanging man candle today. It has chance to go up to $1.422 (161.8% Fibonacci line) and a very strong support at $1.127 (61.8% Fibonacci retracement) with raising volume.
All Standard Six Indicators showed Bullish Convergence.
- Stock price above 20D, 50D and 200D MA.
- Stock price at the upper band of Bollinger Band.
- Stock price above Parabolic SAR
- MACD blue-red crossover at upper half to show bullish convergence.
- RSI & Stochastic on rising trend.
- Volume is increasing for past few days and 1.6 million shares traded today.
Market sentiment is good today and hopefully will still be good for the next few days. If the stock price can stay above $1.24, short term the stock price may have another 10% upside potential. I will continue to monitor the stock to see whether it will reach $1.422.
If all my Technical Analysis goes wrong, I will hold the stock as Value investment and collect dividend because the company’s fundamental is good and the stock is still cheap.
Base on Q2, 2009 financial report:
- PE = 8.1 (Historial high PE is 21.6 in 2005)
- Dividend Yield = 4.3%
- Net Earning = 23%
- Current Ratio = 1.79
- ROA = 12.9% (Base on 2008 Full Year)
- ROE = 28% (base on 2008 Full Year)
- Cash Flow = S$31 Million (Already 50% more than 2008 Full Year for the first 2 quarters due to capacity expansion)
- 3 years historal high = $2.564
- Current Price = $1.28 (only 50% of 3 years high)