Olam breaks a critical resistance at $2.82 yesterday. The next resistance is $3.05 (extended resistance line back in Mar-May, 2008) followed by $3.224 (123.6% Fibonacci Retracement Level). A safer entry point to consider is when Olam retraces back to$2.82 to test this is a good support to confirm the breakout is successful.

General Electric (GE) down trend has been confirmed after failing to break 200D MA Resistance for the 2nd time! The stock is on track to the price target of $13 after breaking out from the wedge pattern. Follow up from previous post.

GE seems that has failed to break the 200D MA resistance. This 200D MA resistance is also a 23.6% Fibonacci Retracement Level. The chart pattern also suggested GE has broken down from a wedge pattern with a target price of $13. This is a good candidate to short by buying PUT option.

Can this breakout successful from a Falling Wedge? Target Price for successful breakout is $1.30.

Things to watch out:

• 20D Crosses 50D MA to show the bullish strength.
• Return of the trading volume.
• The next higher high has to be more than $1.15 (61.8% Fibonacci Retracement Level) to show an uptrend. A higher low has been formed ($1.05 with reference to $1.00).

UNG is showing signs of reversing a down trend to up trend. Technically & fundamentally (economy perspective) this Natural Gas ETF is due for a long term up trend. I summarise my Technical Analysis and Fundamental Analysis as below:

Fundamental Analysis (Economic Perspective)

• Economy has started to recover. The demand of natural gas will increase due to increasing economy activities like manufacturing, transportation likes car and truck, cold winter, etc.
• Natural gas is another sort of popular green energy to be used widely in future where the world is determine to cut emissions of greenhouse gases.
• Natural gas will be part of the energy substitution to petrol for all the car users.
• Due to the low economy activities during the recession, natural gas is over supply and thus, there is no more natural gas storage space left. The major gas producers are now being forced to cut production; a move which may actually be beneficial to the industry as a whole as it will likely help boost prices, thus restoring margins for many producers.

Technical Analysis (Base on Chart Patterns)

• A double bottom (or inverted head and shoulders) has been formed.
• UNG broke out from the falling wedge resistance with increase in trading volume.

Things to look out for

• The falling wedge resistance turns support, i.e. the stock price does not return to the falling wedge.
• UNG breaks the $12.25 resistance (61.8% Fibonacci Retracement Level). This level is also probably the 200D MA if I extrapolate the 200D MA line.
• The next lower low does not happen below $8.50 (historial low!)
• 20D crosses over 50D MA.

Jaya Holding closed today at $0.495 with a opening marubozu candle with a spike in volume and breaks out from a Symmetrical Triangle. However, it remain to be seen whether this is a successful breakout due to the past 3 attempts. One thing to note that the spike in volume in diminishing compares to the previos one, and this is not a sign for a bullish & sustainable breakout. The past three spikes in the stock price were not sustainable due to lack of volume for the next few days. If this breakout is successful, the price target is $0.58.

China HongXing looks like Breaking Out From A Down Trend Channel with an increase in a trading volume for the past two days. The stock price broke the 20D and 50D MA resistance, and MACD starts turning bullish. Immediate support between $0.18 to $0.19, next resistance at $0.215.

Intel (INTC) is breaking out from a Symmetrical Triangle with increase in trading volume. This breakout is a bullish signal and also confirmed by the Technical Indicators. Price target is around $22.50.

Technical Indicators

• Stock price above 20D, 50D and 200D MA.
• MACD crossover and move into bullish convergence region.
• RSI is going up.
• Stochastic is going up.
• Stock price is above Parabolic SAR line.
• Stock price is at above Bollinger Band.

Yanlord is going to breakout from a falling wedge. Past two trading sessions ended with two Bullish Marubozu candles with increased in volume.

• Current stock price ($2.41) has broken 20D and 50D MA resistance line.
• MACD has crossovered the signal line and moving into bullish convergence region.
• RSI and Stochastic are heading upward.
• Stock price is at the upper Bollinger Band and above Parabolic SAR line.

Price target remains the same as previous analysis of about $2.85 after breakout. Yanlord has to stay above $2.40 (a critical resistance turned support level of the falling wedge) before reaching the target. Otherwise, the stock will fall back and gyrate in this falling wedge.

Yangzijiang broke out from an Ascending Triangle on an uptrend with an increase in volume. If the stock retests $1.06 and can stay above this resistance turned support level, the price target is about $1.32 (but need to clear $1.243 resistance first).