As you may know, we have a position on ASIA since early March. The stock had a pretty nice rally today, it jumped more than 7% with relatively high volume.
It is going to test resistance at $32, which is last’s highest price back in December last year. Should the stock broke this resistance, we are planning to add positions to ASIA. If it is not breakout, we may close some of our position and take a profit.
First of all, this is a speculative trade. Today, we open a long position on CAGC at the price of $24.34. The reason is because CAGC has been holding 500-day moving average (50-DMA) as its strong support. The stock moved to below 50-DMA in early February; but then it rebounded nicely.
The MACD indicator is still moving down; so there is a possibility that the stock might break 50-DMA and go to the next support at $19.97 or even $16.09. That’s why; we’ll be monitoring this trade very closely.
PS: For those who are new to our trading journal; we’ve been doing stocks trading based purely on technical analysis. The goal is, of course, to beat the index by timing the market. You can follow our trading journal closely from our Covestor as well.
This morning, we opened a new long position on HMIN (Hotel Inns & Hotels Management Inc.) We’ve been watching this stock for quite a while; and just pulled our trigger this morning. Based on technical analysis, the stock seems to break short-term downtrend last week. It rebounds nicely from 61.8% retracement based on its closing price. If we look at the intraday price, it successfully rebounds from strong support in mid-October.
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