China Animal Health: Wait for Pull Back

Technical Analysis

China Animal Healthcare’s is currently still trading on an uptrend but this stock is reaching 3 years high.  

  • Currently ChinaAniH is testing the resistance at about $0.36. If this stock can stay above this level, the next resistance is at $0.43. Rolling PE at this level is 18.2.
  • If ChinaAniH fails to break this resistance, base on the chart, it is better to wait for ChinaAniH to pull back to between $0.30 to $0.32 (close to the uptrend support and 78.6% Fibonacci Retracement Support) for a safe entry for long term investment.

Fundamental Analysis

  • Current Price = $0.365
  • Current PE = 16.53
  • Rolling PE = 15.46
  • FY08 PE = 21.33
  • FY07 PE = 50.2

Refer to the previous Fundamental Analysis on this China Animal Heatlhcare.

My Rule for timing Entry and Exit Point (for reference)

  • Buy Near Support, Sell Near Resistance.
  • Never Chase a Stock Price.

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