Friday, July 8, 2011

China Dairy Grp

China Dairy Grp: CIMB has Technical Buy Call. House see some signs of capitulation on S-Chips lately and based on technical analysis, also see potential for a strong rebound in the coming wks. China Dairy has been falling since hitting a high of $0.26 in Jan10 and house see a possible terminal point for this downtrend following the breakout of its resistance trend line last week…..

Indicators show a possible bottom at $0.065. MACD and RSI show a triple bullish divergence together with buy signals on both. House would be even more bullish if the MACD is back above the zero line and prices are above its 50-day SMA...

Recommend Aggressive traders may opt to get in half now and collect the rest on weakness. A close above $0.085 would mean that the reversal is in place and prices are likely to head towards its 200-day SMA at $0.115. There is some resistance at $0.12 and stop loss at $0.06.

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