Thursday, January 12, 2006

China Wheel (E94) - A Gem that turned to Wheel of Fortune


Since my last calling (E94) it a GEM and alerted its opportunity on the 3 Jan 06, another breakdown has occurred today. Looking at the Chart, I can safely say that no one can find fault with it. Why? It’s very beautiful and prefect, all indicators included. OBV flied rocket high and I like so much the ADX at 30. White Candle was dormant, decisive and aggressively pointing upwards. Further there is a Single Bottom so nicely formed. Theoretically based on TA principal, Target Price of 0.40 can be achieved. This is calculated with depth of the trough reversed upwards. Probability of continuation of today’s uptrend is very high based on this breakout with the Big White Candle,having exceptionally high volume (16.8 mil Vs 3 mil of the average 10 periods) and all indicators supporting its robustness. Fundamentally, dealings of Nissan , the booming of Car Manufacturing in China and a very solid balance sheet, nothing could go wrong, right?. Sure, but there is a threat if Aluminum price goes up!You may have interest in last Posting on Jan3 2006

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