Chaoda Modern Agricutlure (HKG:0682) : Gap resistance

Chaoda has fall off the cliff since its August sell off with not just 1 gap down but 2.

Currently, it is trying to break through the gap resistance at around 6.31

If it succeeds, more resistance is expected from the kumo till around $7.2; where it will be the kumo resistance from the Weekly Chart

Both the Tenkan sen and Kijun sen are pointing downwards; which suggest that weak bullish trend.

With such a huge selldown, it will probably better to wait for it to clear the kumo resistance and established a clear bullish trend before taking a long position.

Meanwhile, the bias remains bearish.

By iam802

Trend trading with Ichimoku