The Hong Kong 'H' Shares (China Stocks) were the first to lead the charge on an uptrend in recent weeks. Was sieving through several stocks when I noticed an interesting counter.
Apparently EVOC Intel Tech has been running on a nice uptrend since October last year. However, it has breached its uptrend line on 1 Apr 09. Interestingly, Short-Term GMMA is criss-crossing Long-Term GMMA as well - indicating a point of deliberation for a possible trend reversal. A bearish divergence signal was observed on MacD (26D, 12D) as well, which further fuels the possibility of a fall in prices.
Both Long and Short Stochastics is currently in the oversold region so there is a possibility of the stock having a short rebound up to Support-Turned-Resistance of Uptrend line before continuing its run down. That would be a good point of entry for a SHORT position. Unfortunately, CFD is not available as an instrument for shorting in the HK market :(
Nevertheless, this portends to the fact that there may be a possibility of a trend reversal for the recent run-up in the global indices, which is too fast and furious.
*Other stocks which exhibit MacD bearish divergence signals include Orient Overseas (Int) and Haitian Int.
**Based on historical records, April is technically the most bullish month of the year for stocks. Will the bear come out on its prowl again towards the end of the month when May approaches such that the old adage "Sell in May and Go Away" materialises? Let's wait and see!
Apparently EVOC Intel Tech has been running on a nice uptrend since October last year. However, it has breached its uptrend line on 1 Apr 09. Interestingly, Short-Term GMMA is criss-crossing Long-Term GMMA as well - indicating a point of deliberation for a possible trend reversal. A bearish divergence signal was observed on MacD (26D, 12D) as well, which further fuels the possibility of a fall in prices.
Both Long and Short Stochastics is currently in the oversold region so there is a possibility of the stock having a short rebound up to Support-Turned-Resistance of Uptrend line before continuing its run down. That would be a good point of entry for a SHORT position. Unfortunately, CFD is not available as an instrument for shorting in the HK market :(
Nevertheless, this portends to the fact that there may be a possibility of a trend reversal for the recent run-up in the global indices, which is too fast and furious.
*Other stocks which exhibit MacD bearish divergence signals include Orient Overseas (Int) and Haitian Int.
**Based on historical records, April is technically the most bullish month of the year for stocks. Will the bear come out on its prowl again towards the end of the month when May approaches such that the old adage "Sell in May and Go Away" materialises? Let's wait and see!
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