Stock Technical Analysis: FUQI Finding Support
Written by Sidney on September 19, 2009
Here is my response for a stock technical analysis of Fuqi International (FUQI), a company that engages in designing, developing, promoting, and selling precious metal jewelry in China. 
The stock chart below indicates that FUQI is in a powerful uptrend since March 2009, after basing for much of 2008. It is, however, overbought in the short term and the correction over the past 3 trading sessions suggests that FUQI is still trying to find its support level. Technical analysis suggests 2 possible support levels:
- 20 day exponential moving average: This moving average has acted as a nice support over the past 4 months, and the stock price is currently sitting just above this support line.
- Support trend line connecting its recent troughs: This support line appears to be more predictable, and suggests that the price has more room to fall, to about $26.
Stock Technical Analysis of FUQI
We do not recommend buying FUQI until this current correction is over, and that the price clears its previous high of $32.68. If you are currently holding on to this stock, sell the stock if the price drops below its support trend line.
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09-21-2009
6:53 pm
Sidney
Hi Rob, glad to be able to help. Interestingly enough, FUQI hit a low of $26.56 today, which was very near the support I mentioned at $26, before staging a rebound. Let’s wait and see how this one will pan out!
09-21-2009
10:33 am
rob
FUQI is dropping sharply today. Luckily I read your analysis and will hold and wait. Thanks!