Evening all,
With a name like that, I was tempted to use a title like “reason to cheer?” Anyways, this is Longcheer, L28.SI, a China-based company that deals with mobile phones.
Longcheer experienced quite a drastic decline in share price at the start of 2011. Whatever the reasons may were, Loncheer languished at the $0.10 region for quite a while. However, fortunes turned and Longcheer gathered steam throughout 2013 and into this year. The rally was somewhat steady and progressive, which meant that the 200-day MA could almost keep pace with price. Recently, Longcheer made highs at around $0.34 before retracing down to below $0.28. A quick recovery put Longcheer up at $0.30. I like the resilience of this long uptrend that Longcheer is in. Nothing indicates to me why Longcheer’s trend should stop, so I expect to look for set-ups towards the upside.
For those who believe in Fibonacci, I took the highs in 2010 and the lows in 2011 – high and low of post-2008 crash – and found an interesting picture. At the 23.6% and 38.2% retracement levels, Longcheer found resistance. The recent breather is expected because of the 38.2% level – but nothing more than that. I think now is a good time to take advantage of the dip for a long set-up to ride the trend if it continues upwards. Let us see how this goes.
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