I just have an alert on my TOS platform that SVA opens with price cutting the Tenkan sen ( a level I set at around 7.55).
Tenkan sen is the equivalent to a ‘moving average’, though there is some differences in the computation of it.
Nonetheless, I believe there’s many trading system out there that looks for an entry when the price cuts above a ‘moving average’. In this case, if SVA do not close below the Tenkan sen, we may have a good entry and indication for more positive moves.
Personally, I only need SVA to hold just above this level and form a good base for a larger rally next year. At this moment, there is a chance that many are closing their books and going off for the year end holidays.
Other points to note:
– Fundamentals like manufacturing capacity was only resolved recently with the JV
– Continuous new contracts within China is a good sign, however, I will prefer to see new contracts beyond the shores of China.