+0.23 (18.85%)
CNIT experienced a nice little bounce today, as expected after being heavily sold off over the past three sessions.
While it was fairly impressive, a couple of caveats are in order:
- Volume wasn't that great, amount to just over 500K while all three selling days that preceded had higher volume (1.3M, 680K, 540K).
- The stock met heavy resistance at $1.55, just under last Wednesday's open price of $1.60, suggesting it might trade within a range below this for a little while.
- The lift may have partly been a result of (temporary) eased investors after the gap posted by US indexes when the US was downgraded was filled today.
That said, I'm not all negative! What I'm looking for tomorrow, in order to have renewed confidence in the stock, is continued good volume (300K-500K would be nice), a pretty candle (no dark cloud bullshit), and a range between $1.39 and $1.60, ending slightly higher (no need to prematurely try to break out).
I'm expecting resistance to be in the $1.35-$1.40 region, or $1.24-$1.27 on weakness, based on the action in the previous two sessions.
Couple of news headlines today:
- China Information Technology Stock Soars (CNIT)
- China Information Technology Falls 4.62% On Heavy Volume: Watch For Potential Rebound (CNIT)
Oh and, in case you missed it, Rodman & Renshaw downgraded CNIT from an "Outperform" to a "Market Perform" last Friday. Dunno if I trust those guys though. They have price targets on a whole bunch of small Chinese stocks and aren't getting any of them right. Their previous price target was $9.00. I don't know what the new price target is.
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