China Animal Health: Wait for Pull Back Part 2

If you are trading China Animal Health, I believe you will love the WAVES very much. You can see the wave patterns clearly and the predictability of the support and resistance. China Animal Health bounced back from the resistance of $0.43 (with the help of 123.6% FR level) as indicated in my previous post. Base on the latest chart pattern, ChinaAniH is currently testing 78.6% Fibonacci Support at about $0.348. The next support is the uptrend support (which is also a 200D MA support) at about $0.32 if this 78.6% FR support cannot be hold. 

Things to watch out:

  • If you are planning a good entry for long term investment, you need to keep a very close watch on whether China Animal Health can bounce back from this uptrend support line (green line). Bouncing off this uptrend support indicates the uptrend is still intact. If this uptrend support is broken, this stock will start a down trend.
  • If you are familiar with Elliott Wave, you can see that Wave A may be in formation. If the Elliott Wave is valid, watch out for a significant correction.

p/s: If you want to predict the stock price, I strongly suggest you to learn how to draw Fibonacci lines. Fibonacci will help to answer lots of your questions on where are the supports and resistances, where are the entry and exit points, etc.

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