A Double Tops chart pattern is observed on Yangzijiang daily chart with neckline at about $1.25. Breaking down from this reversal chart pattern will send Yangzijiang to the price target of about $1.11. Currently the stock is just trading around the neckline support. Both weekly and daily charts are bearish base on 2/5 EMA, 20D SMA. MACD shows the bull has lost the steam as well. Another potential stock to short.
Yangzijiang Fundamental.
Starhub has been on the uptrend for a few months and currently approaching historical high resistance at about $3.21. Although the dividend yield of 6.37% (base on stock price of $3.14) looks attractive, the risk of trend reversal is relatively high to worth the gamble. The current Starhub stock price is also violating my rule of “Buy Low Sell High” and “Never Buy near Resistance”. The safer entry point is at about $2.92 and need to see whether this previous resistance can become a support level.
UOB Bank is forming a Rising Wedge, a Trend Reversal Pattern on the daily chart. The wedge support is at around $18.20 which is also the 20D SMA. Weekly chart show UOB is having difficulty to break the 61.8% Fibonacci Retracement Resistance. Although 2/5W EMA still showing uptrend in weekly chart but potential trend reversal Rising Wedge in the daily chart may alert the short sellers. Watch out for a Bearish Convergence signal to confirm the trend reversal.
XD Date: May 7, 2012
