Yangzijiang -- 4th Aug 08

Yangzijiang closed $0.795 on 1st Aug 08 after hitting an intra-day low 0f $0.765 on 29th Jul 08. It was the 3rd time it hit $0.765 for the month of Jul 08 already. The difference between 29th Jul 08 and the other 2 previous occasions was on 29th Jul 08, Yangzijiang closed with a doji candlestick with high volume and since then price has never re-test $0.765 again. This somehow indicated this time round Yangzijiang could have really "bottomed up" at $0.765. The Bollinger band is contracting indicating a big movement of price level could arrive soon. Current price level is floating around the 14d EMA level of $0.80. MACD histogram is in the positive region since 10th Jul 08 and MACD signal is slowly edging up to the zero line. RSI and Stochastic are also showing sign of moving up to 50% level. All these signs are showing Yangzijiang is having limited downside at the moment and therefore if there is a big swing of price movement soon, it would favour the upside more than the downside. Resistance will be capped at the $0.90 level in which it has previous turned from support to resistance. At current price level of $0.795, upside at $0.90 and downside at $0.765, the reward/risk ratio is 3.5 (0.105/0.03). This is a very attractive reward/risk ratio if investor is very bullish on Yangzijiang.