Remember I mentioned about H-shares being the first to lead the rally. It is all happening, with all counters I mentioned being in some sort of bttoming formations. The first to break out, and reach my entry level has to be China Communications Construction.
Fundamental: Just like Midas, it is poised to benefit from China's RMB 4 trilliion stimulus package.
Technical:
Reverse head-and-shoulders, since Sep, meaning it has fulfilled minimum 3-mth period. Breakout of HKD 8.40 also achieved. Resistance is at 12.20,
Trend: LT (200d) down, ST (10d, 20d) has moved up.
Oscillators: RSI, stochastics moving down from overbought region, suggesting prices should correct to 8.40 immediate support region. ROC also +ve.
Directional: On weekly and daily chart, ADX moving below 20, suggesting downtrend is stalling.
Volume: 5-day Vool. EMA rising, suggeting breakout is on increased volume.
My strategy: Buy.
Price to buy: Buy 5 lots @ 9.30, buy 5 lots when price fall and bounce off from support later.
Stop-loss: 7.60
TP1: 10.30
TP2: 11.30
TP may change, as I am looking for a more dynamic TP. It also does not reflect ideal risk-reward ratio. Looking to take profit nearer resistance level at 12.20.
Trade was good.
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