Support 1: 4.80                       Resistance 1: 4.19

Support 2: 5.93                     

China Jinmao’s bullish recovery is not quite yet complete base on the technical factors presented.  

• The stock has formed a bearish flag pattern, signifying further downward pressure.
• Prices have been trending below the 50 SMA. Although the price has been trending above the 22 short term SMA, the likelihood of it heading below 22 SMA is still highly possible.
• Flat bullish volume and Stochastic upward momentum do not match. The price chart also suggests that the bullish movement lacks strong momentum.
• Stochastic may head into a potential overbought cross scenario. Should it happen, the bearish sell-off might occur soon.

*Should the stock rise above the psychological level of 5.00, chances are the bearish flag formation is off and the stock may resume its bullish run.

CHART LEGENDS

Red line = 200 periods moving average

Blue line = 50 periods moving average

Green line  = 22 periods moving average