YZJ Shipbldg: A huge sell down caught! More downside from here? Price 0.88

by michaelg August 16, 2019

Author: Trading Impossible | Joey Choy
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Just early last week, we had seen YZJ Shipbldg breaking the 1.40 support and pushing lower bearishly..

More importantly, it was approaching the 1.35 key support that has been holding since the beginning of the year..

There were some signs of weakness and hence a potential breakdown was possible..

Some downside targets were drawn as seen..

Note that this was before any new was announced on its Chairman being probed in China..

A few days later, indeed we have seen the bearish price actions of the breakdown happening…

Target were reiterated again and there were also signs of the short term downtrend playing out..

First target was around 1.15 then 1.00…

Then YZJ Shipbldg suddenly tanked down on the news being released..

Breaking the 1.10 support too…

After the trading halt was lifted, it had also broken the 1.00 psychological support and traded all the way to below 0.800..

See where we are below now,

Some support coming back from 0.70 to 0.80 which were previous support levels in 2016..

What a rapid sell down seen..

For now, for any shorts positions, would be good to take some profits as we approached this support as buyers can return to bargain hunt again..

Would want to be careful of more bearish actions below 0.70,

but some consolidation expected for now before more direction given the huge dipped over the past week.