Technical analysis considerations (as at 01/06/13)
Share-price has fallen from a high of $3.28 on February 19, 2013 to a low of $1.385 just over a week ago in the wake of expansion of its online interactive gaming business.
$JIN is still trending downwards and in the last six months has broken support at $2.07; now just over a week ago, support at $1.60 was broken.
Since then the shares have traded in a range between $1.60 and $1..40.
This last week there have been three days that have shown Doji candlestick appearances, respecting support at $1.50.
This suggests reluctance for share-holders to sell at lower prices, and may herald a reversal in trend.
A break-out to the up-side through resistance at $1.60 would confirm the trend change, and a rebound, which could test resistance at $2.07.
The 38.2% Fibonacci retracement level is at $2.10, a suggested target by the end of 2013.
If buying now a tight stop at about $1.38 would be appropriate. The next support is $1.10.
Although there is technical evidence suggesting a turn-around in trend, the weekly chart shows a continuing strong down-trend. Hence ideally buyers should wait to decide the next direction of price movement.
NB This post doesn’t constitute a recommendation to buy or sell $JIN shares.
This comment was published in Ten Bags Full website 01/06/13.
Trading 03/06/13 the share price lifted 13 c or 8.6% from $1.52 to $1.65 at close.
Trading today (04/06/13) opened at the high for the day at $1.685, but weakened to close at $1.65 again.
The break of resistance at $1.60 was decisive, and if it now becomes a support level, one would expect further gains.
As shown on the daily chart for JIN, the next target is resistance at about $2.10 which happens to also be the 38.2% Fibonacci level.
If this target is reached, the situation could be reviewed. Further targets might be $2.33 ( the half way mark), $2.56 (61.8%) and $3.30 (100% retracement) if upward momentum continues.