Tuesday, February 10, 2009

Technically Sell Gallant Venture, Sell China Hongxing Sports, Buy Yanlord Land

Gallant Venture (GALV SP; S$0.10) – SELL

• Yesterday sharp break below its 30-day SMA is bearish for the stock in the immediate term. The long black candle adds to the bearishness.

• Undoubtedly, indicators would be negative with the MACD confirming its dead cross while RSI hooked down sharply.

• Expect a retest of its recent low of S$0.06 soon. The support at S$0.08 is weak. Resistance is seen at S$0.11 and S$0.14. Sell.

China Hongxing Sports (CHHS SP; S$0.19) – SELL

• The stock has stayed below its 30-day SMA for a long while now. Resistance is at S$0.20 and S$0.23.

• Technical indicators mixed right now with the MACD being negative but RSI is flat.

• The stock is likely to test its S$0.175 support now that it is below the S$0.195 level. A break below the S$0.175 is very bearish for the stock. The stock remains a sell for now.

Yanlord Land (YLLG SP; S$0.935) – BUY

• Breakout of its long term resistance trend line is bullish for the stock. As we mentioned earlier, a pullback was likely after the RSI rises above the 70pts mark.

• Positive daily indicators are still supportive of further gains. As long as the stock stays above the trend line from the October lows (at S$0.91), there is a good chance that it can still rally.

• Upside resistance is now at S$1.11 and S$1.29 while support is at S$0.91 and S$0.76. Buy now with a stop below the S$0.91 support because a break below that level is bearish for the stock. Maintain buy for now.

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