Hello Traders, let`s have a look to the Stock of Netdragon, a Hong Kong listed Company. They went public in 2007 and the highest price to history was at HKD19.-! After that high the stock declined sharply to HKD .92 in Nov. 08 near the high of the real estate crash. After that massiv drop, the stock start a clear five-up that topped in May 2015 at HKD 42.04. The correction following that high is either an A-B-C decline within a wave (2) or it is wave A/W of (2)! Observe the possible triangle within wave „B“ with a short, but sharp thrust and the decline that followed thereafter. Note the nearly perfect trendchannel also, drawn at log-scale, that terminates at the level of a wave 4 of lesser degree, a typical target zone and it retraced at least a bit more as the .618 Fibonacci of the „five-up“! Twice to note is the running channel breakout which implies strength of the stocks, and, if so, we can call out a new high well above the level of 42.04 HKD! Support receives this view from the „MSCI Emerging Markets Asia Infotech Index“ that may bottomt @€472 (@EUREX) in October 2018! So for Traders it might be interesting to trade this stock with a stoploss @~HKD11.- and a first target at HKD 19.08 as long as the low @11.- keep intact! So, that`s it for Sunday...
Have a great week... ruebennase
Feel free to ask or comment. Trading this analyze is at your own risk!