Yu Kwan Lung: DONGFENG GROUP (00489) Buy: $11, Target: $12.3, Stop: :$10
Yu Kwan Lung, independent analyst, said reading from the trend of the share price, 10-day moving average is now at $11.68. 50-day moving average is at $13.02. It swings below the 10-day moving average, which mirrors to be ease. Meanwhile, RSI-14 is 31. It hovers below the 50-mark level, which suggests to staying on weak side. In the Stochastic Oscillator, %K climbs above %D as it unveils a buying signal.
Analyzing the share price movement, the long-term low ( 4/10/2011 ) is at $8.81 and the recent high ( 22/2/2012 ) is $15.8. Measuring from the recent high, Fibonacci 0.500 correction from the recent high is at $12.3. 0.618 retracement is at $11.48. It hovers below the 0.618 retracement, and stays in a typical correction. However, It seems to gain ground and consolidates at recent level. (y)
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