Just adding most of the charts that were with the third fortune cookie in the post below. All charts are yearly charts with candles representing days. All charts courtesy of Interactive Brokers (HK) ltd. platform.
Industrial and Commercial Bank of China (ICBC, 1398)
Relatively straightforward. Also, Chinese easing, things might look pretty good here. Good Magic-D trend, but risk of short term stall. Highly likely to break out soon! A more conservative negative trend is possible to draw rather easily from February ’11 bottom to September ’11 top, and to pretty much where we are, which probably means an imminent break is slightly less likely. Give it a week, and see how it takes out that triangle!
Hong Kong Exchanges and Clearing (HKEx, 388)
Picture and caption says it all, my job here is done! More leveraged finance play (this covers a range which is half of the value of the top note, pretty impressive!) and more directly linked to HK.
Luk Fook Holdings (590)
Wider triangle, and if you draw the middle line between the two trend lines shown, you end up very close to the June ’11 peak which sparked the stock higher, as well as the October ’11 interim peak. Watch that 20D EMA though!
Now for some more interesting charts!
Zhaojin Mining (1818)
Magic-D is very anonymous, but indicating down on both cylinders, so a wider rally in gold needs to be in place. You can chalk this one up on your wait-to-win list. The lower range of the channel was pretty well traded off of and gave some good triangle importance in its early days, and now the triangle line + Bollinger Band is granting support. watch for that 20D EMA break and then peel your eyes to that wonderful 60D EMA which hemmed price without fail since late September onwards. Then, maybe with luck and another 2-4 months into the game, we can leave that trend line behind!
Galaxy Entertainment (27)
This gambling company has a number of strong support lines coming into play right now, and then on top of that we have the great break potential. Of course, Magic-D is rather anonymous, but that’s just an indicator that triangles are in place and trends matter! Keep an eye at 13.50, and should that fail, check for the next line down at near 12.00 by the time. Then later 16.00 provides great opportunities, but the inherent question is that will happen if price approaches or, fingers crossed, breaks the 19.00 line.
Interesting times ahead but Bollinger bands that do not seem too keen on letting nearly anything through in a rally scenario speaks against successive breaks either side short term.
SJM Holdings (880)
Looking at the chart for the biggest casino operator in the Macau arena, things look rather interesting. When it finally broke its massively destructive wedge line downwards, id did so in style, just to run out of steam at the wedge support! Magic-D shows potential as well, so this might be the most mature opportunity you can get out there short of not-clearly-in-a-triangle Sands, which has been selling comparatively like ice cream in a desert. Still, my triangle analysis works wonders on this stock, and the fact that there has failed to be a bearish completion of a 1+ year Head-and-Shoulders pattern speaks volumes that this triangle might just be about to break! First thing I’d get into, if only to ride the train for all it’s worth when the other triangles break!
Melco Crown Entertainment (200)
Now, the least profitable of the casino operators has gotten by far the worst treatment as well, with negative wedges, negative triangle breaks and an August-to-October fall of a brutal 60%! Again, the 60 EMA is the tracker baby here, and close adherence to its early-year trend line after the September waterfall unloading seems to have given this stock some bidders which could hopefully target that level rather than the slowly negative trend line. Still, Magic-D and Bollinger says hold, there’s no point in rushing in far before 6.00 flat, so give up those 10 early percent and ride the wave afterwards, peak-to-peak-to-peak.