I was studying the chart of Yangzijiang closely. After all that suspension and gap down with all those long bars, the stock seemed to stabilize now without much worry. It seemed to be the stock that is in play again since all the bad news were left aside from the CEO uncontactable to issues with the company. The stock had a rebound lately, and then simmered off with the overall market conditions. Up and down, it is normal to have such cycles since before a stock runs, there would usually be a flush out first before the real move happens.
So in the 5 minute chart, as you can see the stock gap down from the top and then it went spiral down without much support. The final blow was a gap down and suddenly you see an exodus of retailers as they were panicky throwing the shares which caused the price to rebound yesterday. The chart has other nice turning points such as the supply/demand zone. So now since Yangzijiang touched the Demand zone, I am watching closely for some collections before taking a long trade. It pays wise to study this chart carefully before taking a position. For now, I would wait for the stock readiness which might be soon to take a calculated action.
Ronald K - Market Psychologist - A Stock Market Opportunist
