Yangzijiang rebounded today higher. After the bad news that happened weeks ago, today the stock soared but in the daily chart, it's still in a range while in the minute chart, it's currently trying to break out of a zone. From the chart wise, it looks beautifully setup with a ws in the daily chart but because this is a risky stock, I am not too sure if I would trade it or not. So what happened?
I believed most sellers have weakened and whoever wants to sell, most of them have already panic and sold. See how the selling slowly abates with virtually no sellers where price wouldn't tank below 0.89 anymore. The buyers might be accumulating, doing some mini flushes here and there, ready to move the stock but the margin for this stock is high and it might anytime be suspended. There were some collections yesterday and the day before yesterday while the chart formed a turning point for higher prices that might come. I would have traded this counter if not for it's riskiness.
Ronald K - Market Psychologist - A Stock Market Opportunist
