YangZiJiang - Coast is not clear (yet)

YangZiJiang has recovered from its recent low. However, the recovery is due in part from the macro developments (clarity from Greek debt and US stock market), as well as the company's clarification that it is not issuing any convertible bonds.

The outlook for YZJ is still not clear, i.e. not a rally in any sense. The general price is still trending within a downward channel, while the price may get stuck in the price range of $1.40-$1.42. This price range seems to be a resistance / support as previously noted.

YangZiJiang will need to break this trading range of $1.40-$1.42 over the next few days in order to trigger more confidence, from a trading perspective.

YangZiJiang - Price Bottoming?

In mid-June I posted in Bulls & Bears that YangZiJiang continued to trade within its downward channel with more downside to go. True enough, YangZiJiang fell to a low of $1.39 close last week.

Using the chart, YangZiJiang has some signs that the price has bottomed out. Of course, the more seasoned audience will caution that this may be just a short retracement, i.e. the price may have more dowside.

However, given that US's QE2 is ending in a few days and the big funds should already have exited their positions, there may be limited downside to stocks with good fundamentals. YangZiJiang's RSI and MACD show signs of bottoming (last candlestick is still forming in chart above). Should YangZiJiang maintain the support of $1.40-$1.42 and close positive over the next few days, July will be a good upward price movement month for YangZiJiang. No vested interest (at this juncture).

YangZiJiang

Despite the recent announcement about the Seaspan deal, YangZiJiang doesn't seem to be able to break out of it's downward trend. It is still trading within the same downward trend, and it will be dangerous for any trader to pick bottoms.

YangZiJiang has more downside to go. The only consolation is that the RSI seems to have reached its bottom, while the MACD maybe reversing. With the DJIA moving up more than 100 points at the time of posting, stocks in Singapore may also rise in tandem tomorrow. If the price movement over the next few days can allow YangZiJiang to break out of $1.60, then there may be hope for this big shipbuilder.

Current Positions & Yangzijiang

Away for holiday for a week.

The recent drop for stocks is significant, just a pity I couldn't get out in time.

Still having the following positions:
- Sunvic - Semb Marine
- Sunningdale Tech

Yangzijiang continues to be in a down trend, and perhaps it is time to pay more attention to it. MACD and RSI both trending down, but the price will attempt to close the gap. Likely to hit the sloping trend line before its downward spiral.