Stock Technical Analysis: WATG at Critical Resistance
Written by Sidney on September 8, 2009
I recently have a request to analyze Wonder Auto Technology (WATG), so here it goes! WATG engages in the business of designing, developing, manufacturing, and selling automotive electrical parts in China.
Stock technical analysis shows that WATG had actually tested $12.83 twice between late Jul 09 and early Aug 09, but failed on both occasions. This resistance level was also a strong resistance back in Jan 08.
The chart below indicates that the 50-day exponential moving average has served as an excellent support and resistance line over the past 1 year. Therefore, this moving average will likely continue to serve as resistance today as the price moves higher and touches this line.
If you are not currently holding on to WATG, do not buy into this stock until the price clears the previous high of $12.83 on heavy volume. If you are holding on to WATG, sell the stock if the price reverses and fails to break definitively above the 50-day exponential moving average.
Stock Technical Analysis of WATG (Sep 8, 2009)
Since this is a China stock, don’t forget to consider the broader effetcs of the Chinese market (as indicated by the Shanghai Composite) on this stock performance. The below 3-month chart of the Shanghai Composite versus WATG illustrates this close correlation.
Shanghai Composite vs WATG (Sep 8, 2009)
Good luck! 
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09-09-2009
12:40 pm
bestwishes
Thanks, sidney. I am watching this stock closely and its $12.83 resistance line. Thanks again!