• The stock broke below its October lows of S$0.12 (now the resistance) last month and has been falling ever since to current levels. It hit an all time low of S$0.07 last week and that is the immediate support at the moment.
• Daily MACD has confirmed its positive cross but the momentum is weak while RSI is slowly edging lower. Note that the RSI is no longer oversold now, which suggests that there is room on the downside from here.
• Since there are still no signs of a bottom yet, the stock remains a sell on strength. Upside resistance at S$0.085-0.09 (gap) and S$0.10. If the S$0.07 support gives way, it could ease further to S$0.05-0.055 next.
China-Sports International Limited is principally engaged in the design, manufacture and sale of sports fashion footwear and the design and sale of sports fashion apparel under their YELl brand.
China Zaino International (CZAI SP; S$0.125) – SELL
• The stock fell below its S$0.16 support (its Oct lows) and this is a bearish sign. The bulls tried to push it back above but there were sellers waiting. Maintain sell on strength call.
• The RSI has just moved into the oversold position. Expect more downside before a rebound sets in. Support is at S$0.11, followed by S$0.09.
• Unless it can close back above the S$0.16 resistance, we continue to expect more downside pressure on the stock as its weekly indicators are bearish. The immediate resistance is at S$0.145.
China Zaino International Ltd and its subsidiaries (the "Group") are involved in the design, development, manufacture and distribution of backpacks and luggage under their "DAPAI" brand.
China Hongxing Sports (CHHS SP; S$0.095) – SELL
• The stock is still in its downtrend channel. The selling does not appear to have eased. Another retest of the S$0.07 and S$0.055 support is likely. If these levels do not break, then a double bottom could take form.
• Indicators are marginally positive at the moment but the RSI is no longer oversold. Again there are no bullish divergences here on both indicators.
• It is best to stand aside for now and maintain our sell on rebound call for now.
Until there is a double bottom formed or a breakout above its 30-day SMA resistance at S$0.13, we would then change our bearish view to a bullish one. China Hongxing is principally engaged in the design, manufacture and sale of sports shoes, sports apparel and sports accessories in China. It principally targets the youth market and the mid-range market segment of the sporting goods industry in China.
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