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Dukang Distillers: Will It Continue The Long Term Uptrend?
Trend Spotting | 06 September 2013
By: Robin Han
Articles (102) Profile

Dukang Distillers Holdings has been declining since early-June and may have fallen too much. Recently, the counter showed some strength. Not only did it attempt to rise in mid-August, but it also showed resilience by dropping a bit when the Straits Times Index fell in panic in late-August.

Based on its financial report, the company has been posting consistent increases in revenue and gross profit. Specifically, it has been growing for consecutively for the past five years and may be in a long term uptrend.

Also, the counter did not fall prey to the recent panic-selling on S Chips triggered by China Minzhong Food Corporation. Given the similar industry, this suggests that the buyers are strong for Dukang.

Given the above, one may consider finding a good entry point. One possible entry point is 1 tick above the high of the few days, while setting the stop loss 1 tick lower than its recent low.

Daily Chart Of Dukang Distillers

Robin Han is a Ph.D in Department of Chemical and Biomolecular Engineering and has got a solid foundation in the financial markets.

Please click here for more information about this author.

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