Yangzijiang broke the $1.26 resistance and move back to it up trend. Chart has been redrawn to show the uptrend support line. As long as the uptrend support is not broken, the next resistance target is $1.56. Yangzijiang PE (at $1.46) is 10.5 which is not overvalue. A good entry point is when Yangzijiang retraces back to the uptrend support at about $1.35 to $1.40. Exit point is $1.56.
DryShips has been beaten down badly due to poor BDI index. However it may been a good time to do bottom fishing on DRYS in anticipating the economy recovery and also many countries need coal for the winter period. Such activities will increase the dry bulk shipping demand and thus drive the BDI index up. DRYS stock price has very high correlation with the BDI index. DRYS hit US$130 and US$115 respectively when BDI hit the peak (> 10,000) in Nov 2008 and May 2009.
Currently DRYS is trading about US$4.00 and current BDI index is about 1,700. If you look at the downside risk (lowest is US$2.72) versus the upside potential (historial high US$130), it looks very attractive for long term investment. However, if the economy does not recover as per plan, BDI will drop further. Is it worth the gamble? Your Call!
OCBC’s upside look limited as the stock has reached the critical resistance level at about $9.00. This level is 52 weeks high and also the resistance of the previous up trend support. A Triple Tops may be in formation with the same neckline extended from the previous Double Tops. Have a close eyes to watch whether 20D, 50D and 200D MA support is strong enough. If the neckline is broken at about $8.10, the price target is $7.00.
