Sino Grandness has slumped 45% from an intraday high of $0.785 on 7 Jun 2016 to $0.435 on 26 Sep 2016. Sino Grandness has broken its support at $0.450 on 22 Sep 2016 with a larger than average volume. It is on the verge of testing an important support around $0.415 – 0.425. If this breaks with volume and on a sustained basis, it will be pretty bearish. Based on Chart 1 below, it remains entrenched within a strong downtrend with death crosses forming on its 21D and 200D EMA and 50D and 100D EMA. RSI is trading at around 32 and based on my personal opinion, it is not low enough to trigger a significant technical rebound yet. Since Dec 2014, Sino Grandness typically rebounds when RSI is around 20.
The bearish tinge in the chart is negated if it breaches $0.530 with volume and on a sustained basis. A break below $0.415 with volume and on a sustained basis points to an eventual measured technical target of around $0.300. Nevertheless, this is an eventual technical and is unlikely to reach in one move due to its current low RSI of around 32.
Near term supports: $0.415 – 0.425 / 0.395 / 0.380
Near term resistances: $0.450 / 0.470 / 0.485
Chart 1: Sino Grandness on the verge of testing important support around $0.415 – 0.425
Source: Chartnexus chart as of 26 Sep 2016
P.S: I have warned my clients about Sino Grandness’ weak chart on 25 Aug 2016 when it was trading at around $0.560 – 0.570.
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