China MinZhong (technical)

China MinZhong: UOB Kay Hian met up with mgt, noting that Mgt has been authorised to carry out share buyback of up to 10% of issued capital. Although the group has yet to initiate the share buybacks, any smallest purchase from the open market would represent mgt’s confidence on the co’s prospects. Technically, note that the stock could consolidate at $0.745-0.87 and attempt to close the gap created on 6 Dec 12. Watch to see whether the stock could be supported at above $0.78 for now. The stock could test $1.00-1.17 if it manages to break out of the consolidation range. Weekly RSI appears to have rebounded from its 50% mark.