Some might wonder if it is time to sell shares of China Minzhong and to lock in some sizeable gains. Well, it is back to the basic question of: "What are we after?"
If we believe that China Minzhong's shares are still undervalued, then, fundamentally, it is not the time to sell. However, if we do not care about fundamentals and are in it for a trade, then, that is a different motive which would dictate that we act differently.
To any casual observer, it is obvious that China Minzhong's share price is having difficulty breaking resistance to go higher. Look at the daily chart and we can see why.
Daily chart. |
China Minzhong's price movement seems to be losing momentum as the MACD forms lower highs and the CMF shows money flowing out. Continuing price weakness in the near term is not surprising.
Indeed, price could weaken to support at ...
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