Monday, January 18, 2010

Potential Chinese properties shorting candidates

Following concerns over Chinese mainland policies to curb rising prices, many Chinese properties counters are starting to exhibit bearish trends (most notably, HK-listed Sino-Ocean, Guangzhou and local-listed Yanlord). This could mark shorting opportunities for these stocks, as their buyingsentiment dampens.

Of these, Yanlord seems promising to short, as it just broke below its 200-day MA but struggles to stay above its 50-week MA. A potential short entry, playing on the property price rise curb theme could be:

Short Yanlord: 1.88 (below 50-week, and $2.00 psychological support)
SL: 2.28 ( above 50-day MA)
TP1: 1.48
TP2: 0.68

Will wait and see if price pans out over the next few days to my shorting level.

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