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Good base building around $4.05. Technically speaking, MPEL shares are attractive since its near to the support level. As long as the support is there, I don’t think its a problem to include this stock in your short to medium term portfolio. Momentum is decreasing and many technical indicator show bullish divergence with the price movement. If the stock can hold the support we may see another short rally to $4.50. With K line on top of D line, the rally might start soon, depending on the markets mood. Let’s keep an eye on MPEL as i think momentum will pick up. Morgan Stanley upgraded the stock today to Overweight from Equalweight.
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CAAS – China Automotive Systems shares closed the day gaining more than 14% to a new historic mark for stock at $19.35. CAAS has been on one of the most amazing runs of this most recent bull market. Looking at the daily chart the investor sentiment in stock showed by RSI continues strong and MACD still going up. Stock still trading in a strong Bull Market with share price above 20 dma, 50 dma and 200 daily moving average. Although RSI is showing overbought conditions, it is not yet the time to leave as the stock may continue to go up. Wait for a confirmation to take some profits.
( click to enlarge )From the technical chart above, we can see that the AOB stock has found a nice support around the $3.75 level. The stock is probably back to uptrend and with KD rising we could see possible rally coming for the stock. The short-term targets for the stock are $4.25 and then $4.31. Short-term investors can buy with a stop at $3.89 and long-term investors can hold with a stop at $3.72.
