1. Chalco (2600 HK) – First day of breakout and strong volume

Is it really easy to buy and hold?  For those who have listened and executed my published recommendation last Oct 31, 2008 where I specifically told readers to expect a 100% return trade, congratulations. You are now up 50% for about a month and a half’s time. (Previous buy recommendation was at 2.80.  The stock closed at 4.20 this Monday).  While the volatility is great, with traders going in and out of the issue, this stock still has huge upside.

Volume was strong in yesterday’s breakout day.  Notice that a double bottom with a higher low was formed.  The stock is now above the 65-day moving average and is out to test the next resistance which is 6.
Recommendation:  Buy.  Investors should position and have a 1-3 month horizon of selling it at 6.00.  Traders are advised to trade in and out of the issue, entering during consolidation phases and selling at resistance levels.

Support: 3.80
Preferred Entry: 3.80 to 4.00
Resistance: 4.89 /6.13

2. Orient Overseas (316 HK)

After a long quiet consolidation, the stock has been continuously going up from its breakout point  of 12.25.  It currently closed at its resistance of 15.08 but with the momentum of the Hang Seng Index, as well as further room for upside in the US market indices, the stock is expected to test the resistance of 18.00 in the next few days.  MACD continues to be divergent.

Previous Recommendation was buying at 12.20 or lower.  Stock is at 15.08 five days since recommendation netting a 25% absolute gain for the readers.

Traders and investors who haven’t entered this stock are recommended to re-enter during phases of consolidation.p>

Support:                 13.75
Resistance:                18.00
Preferred Next Entry Level:     14.50 or lower.