China Hongxing

Looking to vault higher

• China Hongxing Sports (CHS) briefly broke below the long-term uptrend line, but it soon recovered, and is currently forming a base on the trendline.
  
  
• The formation of a bullish candlestick in the last trading session was on the back of high volume, indicating that a strong upwards momentum is kicking in.
  
  
• The upwards trending stochastic indicator and RSI, coupled with the MACD which has cut upwards, suggest a near-term rebound is in the making.
  
  
• A rebound from current levels would take CHS up to its 1st resistance at S$0.58. The 50- and 100-day moving averages are in proximity to this level at this juncture.
  
  
• Support is set at S$0.39, which was a key reversal level in May 2006.
  
  

SHAREHOLDING DECLARATION:
The analyst/analysts who wrote this report holds NIL shares in the above security.

RATINGS AND RECOMMENDATIONS:
OCBC Investment Research’s (OIR) technical comments and recommendations are short-term and trading oriented. However, OIR’s fundamental views and ratings (Buy, Hold, Sell) are medium-term calls within a 12-month investment horizon. OCBC Investment Research’s (OIR) Buy = More than 10% upside from the current price; Hold = Trade within +/-10% from the current price; Sell = More than 10% downside from the current price.

DISCLAIMER
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