Stock Technical Analysis: HRBN is Highly Uncertain
Written by Sidney on September 3, 2009
Yep! More requests for stock technical analysis. This time its for Harbin Electric Inc (HRBN), a Chinese company that designs, develops, manufactures and services a range of electric motors.
From the HRBN weekly chart below, the stock failed to break above the $20 resistance level formed by the previous short-term peaks in Oct 2007 and Jun 2008, and has since taken a steep correction for much of Aug 2009. The stock is currently near its support of about $12 formed from a previous low in Aug 2007.
Stock Technical Analysis of HRBN (Sep 2, 2009)
HRBN will trigger a sell signal once the Aug 2007 low of $11.70 is breached definitively, especially on heavy volume. If you are currently holding onto this stock, continue to hold until the sell signal triggers.
If you have not bought into this stock, then do not buy until the stock rallies past its resistance of $20. In this scenario, HRBN would have successfully carved out a cup-with-handle pattern and may be poised for a powerful rally. Until then, the stock remains uncertain at best.
What’s the Problem with HRBN?
Most of us are aware that a stock’s performance is also influenced by its industry performance. In this case, HRBN being a Chinese stock, has been heavily influenced by the performance of the Chinese stock market – the Shanghai Composite. A comparison chart between HRBN and the Shanghai Composite over the past 3 months is shown below to illustrate this point. I suspect much of the performance of HRBN going forward will be pegged to the performance of the Shanghai Composite, and investors need to consider this point when trading Chinese stocks.
HRBN vs Shanghai Composite
Good luck with this one! 
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09-03-2009
11:16 pm
Sidney
Hiy bestwishes,
No problem! Glad to be able to help.
Sidney
09-03-2009
6:31 pm
bestwishes
Thank you very much for your excellent analysis! I will keep an eye on your blog and keep coming back before I trade any stock. Thanks again!