Technically, it looks like everyone who wanted to abandon ship has already done so, leading to an oversold condition in the counter. Price appear to be forming a possible double bottom, and perhaps a triple bottom.
While it’s early days, quarterly momentum has made a clear positive divergence with price, and appears poised to break out of resistance and its own moving average.
Twenty0ne-day RSI has broken out and is rising after a classic three-point positive divergence. The top of the double bottom provides resistance at 97 cents. A successful break would indicate a target of $1.24
Update: For some insight into China prospect:
https://www.dollardex.com/sg/investUT/pfiles/Market%20Focus%20China%20Nov.pdf
"While the Chinese economy has slowed more than expected, its economic fundamentals have remained intact. Strong retail sales figures showed that one of China’s central pillars of growth, domestic consumption, has so far helped cushion its economy against the slowdown in exports. Additionally, the government has already made a series of macro-economic policy adjustments which should ensure steady and sound economic development."
0 comments
Post a Comment