Wednesday, May 25, 2011

Chinese Take Down?

I've been flipping through my 100+ Chinese watchlist and came across FSIN.

 Weekly chart with a large top in place, which actually broke down today after 2 years

Here's the daily chart.

I don't know if this is a fraud company or not. As far as 3C goes right now, I don't see anything that suggests anything more then a 1 min divergence that took it off its lows on the day. Risk wise, the percentage drop today doesn't make this an ideal setup (at this level), but if you manage the risk through the position size, and perhaps consider phasing into the trade in case there is a bounce in which you can average a better entry, I think overall this looks like a company going lower. You might want to check into the fundamentals of their business and any news that might be available, see if it has a reputation or is suspect.

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