E Commerce China Dangdang Inc (ADR) : Key levels as main support
Entry price | Target | Stop-loss | Potential |
---|
$10.09 |
$0 |
$9.7 |
-100% |
---|
E Commerce China Dangdang is close to an area that might stop the downward trend.
Regarding fundamentals, the company's turnover is expected to grow for the next two years. Moreover, thanks to good margins, according analysts, the EPS should increase by 200% in 2014 compared to 2013. This situation could lead investors to buy the stock.
Technically, the security is in a consolidation area limited by the significant 10.05 support. Moreover, this support match with a long term upward trendline. Above the lower limit, investors could aim a rebound toward the daily moving averages.
Investors can take a long position within the USD 10.05 area. In the first instance, the target price will be the short term pivot point at USD 12.56. In case of breakdown of the USD 10.05 support at the closing price, investors should close their positions.
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