Reminiscences Of A Trader

Tuesday, October 24, 2006

City Developments

City Dev is currently consolidating after failing to break $11.30 (which indeed turned out to be the short term top) two weeks ago. So far, the critical support level at $10.60 have been tested six times. Technical indicators are currently no longer overbought and unless the general market go into some major correction, I expect $10.60 to hold and another dip towards this level in the near term will be a good opportunity for those who are bullish in this stock to initiate another long position. Of course, in the event that $10.60 is broken decisively, the stock's price may head towards $9.90 which is also the 50% fibo retracement of $11.30/$8.40. As i've mentioned previously, if $11.30 is taken out, the stock's price will likely head towards $12.00.

Saturday, October 07, 2006

Hongwei Tech

City Developments

The stock's price may have already hit a short term top at $11.30. Bearish divergence can be seen from the RSI and the MACD is turning down although that does not mean that the stock's price will go down immediately. Support levels will be at $10.90 followed by $10.60. If $10.60 fails to hold, expect it to consolidate at around $10.30.

On the other hand, if it manage to break $11.30 convincingly in the near term, it may eventually heads towards $12.00.