Tuesday, July 17, 2007

China transcom

Great stock recommended by Decipher today (17 July entry)

China transcom

Purely TA play, no idea at all about its FA. Company deals with telecomms products in china. 3G play? haha!

I like the ascending triangle (actually not sure if it's valid because the volume doesn't go lower) which tested the horizontal resistance line 0.54 thrice. The ascending triangle is also the base forming region of the flag formation. Last time I saw this kind of pattern was over at Cosco when I recommended last time. Cheong from $4 to $5 within a week (or less). Not going to let go of this opportunitiy, so I seized it.

I entered near bottom trendline at 0.515, 5 lots. Target price 0.67 based on flag (somewhat the same for ascending too). Might not have to wait long I think, because the converging pt of the triangle is near. My guess is by this week, it'll either breakout of 0.54 and cheong to my target region, or breakdown.