HK 939 @ 2013/9/02

 

Let's talk about the current trend of CCB. Last time, we have examined the graph of CCB. The

price trend is inside the ascending channel. However,after serveral days of corrections. The rising

price trend begin to deteriorate. Currently, the ascending channel is already violated with less

than average volume. The less than average volume indicates that investors lacks interest in the

stock. Perhap, they think that the stock are valued correctly, or they are just waiting for additional

information to decide to enter into new position of CCB. Although there are some bearish sentiment

on this stock recently, The bearish sentiment is not very significant. It is because the stock is still

holding above $5.6 (The stock is currently valued at $5.68). The price pattern is in the consolidation

phrase.If there is some positive news coming in the near future, the stock is possibly going to rise in

price with high volume. However, if there is no additional stimulus, the stock probably will stay at

the current level or even breakout downside. We cannot say which scenario is most probable because

the stock is still in trading under range. The bulls are the bears are battling inside the consoliation

range between $5.6 to $6.0. One more indicator shows the weekness of the stock price is the

bolinger's band. (the lower band is circled in blue.) . The lower band of the bolinger's band is pointing

downward. This indicate the future volitility may rise or the price trend is worsening in the near

future.

I cannot say nothing more about the trend at the present because I think we have to wait for 

another few days or even a week to find out additional information about CCB's future price

trend.


Please leave your comment. I will reply ASAP.


Finally, thank you for reading my blog.

I will  share more insight in the future.

Alan Lee

BA (Honour) in Economics

University of Alberta

CFA Level 2 Candidate