China HongXing has been on free fall recently after announcing worst than expected quarterly. Although the company is still cash rich, the financial ratio has been pretty poor compared to their peers. ROA & ROE are only a pathetic 3% in FY2009 compared to previous years of more than 10%. Recent chart suggests that China HongXing may be ending a down trend by showing doji candlesticks for past two trading days. Furthermore, it looks like a falling wedge has been formed and the chart is close to breakout soon. No clear patterns for the time being until the breakout or a reversal candlesticks pattern is observed.
- Post author:Marubozu
- Post published:May 31, 2010
- Post category:China HongXing / Singapore Stocks
- Post comments:3 Comments