China HongXing: In Consolidation Mode

China HongXing is taking breather now and consolidating at about $0.21 to $0.215. $0.21 which is also a 78.6% Fibonacci level, looks like a strong support. Current chart still looks bullish as 20D and 50D MA are rising very sharply and crossover the 200D MA recently. One negative point is the rolling PE of China HongXing is 43 which is over value. The stock price is running ahead of the stock fundamental. x-Dividend date is Sept 30, 2010.

Good for short trade for the time being.

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