China HongXing looks like breaking out from a Flag pattern with a spike in trading volume. The stock also breaks the 200D MA resistance which is also 50D MA resistance. Other technical indicators like MACD, Bollinger Band, Parabolic SAR, Stochastic, RSI show bullish signal. Also take note that 20D MA crosses up 200D MA, which is another bullish momentum signal. It looks like China HongXing is starting a bull run!
China has been on uptrend for the past two weeks and currently trying to establish a good support at about $0.155 (50% Fibonacci Retracement Level) & $0.16 (200D MA). If China Hongxing does not bounce down from this 200D MA resistance, a new uptrend will start as the stock moves above 20D, 50D and 200D MA. Upside potential is huge if $0.155 proves to be a very strong support.
China HongXing traded 78.8 million shares and also the 3rd most active counter last Friday. The stock closed at $0.14 with a bullish marubozu candle and move above 20D and 50D MA. Traders have back in this counter which has a very strong support between $0.115 to $0.12 for the past two months. Next immediate resistance is $0.155 (50% Fibonacci Retracement Level) and $0.16 (200D MA). Breaking above $0.16 will make China HongXing to be bullish again.
