Goody! Another request from you guys!
Please keep them coming.
Tracking the common rebound theme in most China stocks is Luzhou as well. I do not know much of the stock fundamentals but it looks like the corn starch/ethanol interest is still alive and building up. I can hear Bush live on CNBC talking about ethanol right now as I type.
On to the technicals:
The uptrend has been unbroken and volume has been steady.
A major resistance that needs to be broken is 0.92. I expect the price will waiver around this level.
MFI is climbing nicely. More money is coming in than out.
Stoch is in the "oversbought". Many people tend to see stoch's "overbought/oversold" regions as indicators to buy or sell. This is a fallacy. I will write more on this later.
Current the price has overdeviated by 2 standard deviations. If you are interested in buying, I suggest waiting for a fluctuation back to the trend line - buy on dips, do not chase the price. When the price has fluctuated up too much, it tends to come back down.
Hope this helps!
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