Price action of China Hongxing (CHHS SP) has remained in a relatively tight range for the past two months. Both the 14-day RSI and the bollinger bands are currently depicting a neutral bias – the RSI presently stands at around 47 while the width of the bollinger bands have remained constant for at least the past month. The MACD chart, however, looks to be slightly positive as it seems to be on the verge of producing a positive moving average crossover.
Strong support is expected at the 0.175 – 0.18 region, courtesy of the lower bollinger band and a series of daily lows. We believe any share price decline towards this support level would be an attractive entry point for engaging in long positions. Meanwhile, resistance is seen at the 0.22 mark as identified by the upper bollinger band and the 100-day moving average.
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