Yangzijiang's bullish momentum weak

YANGZIJIANG has been a hot stock among local investors and traders alike since 2007. The stock price then plunged during late 2007, six months after its initial public offering (IPO).

Fast forward to August 2019, Yangzijiang's stock fell 46 per cent within three trading days after the company's chairman was accused by Beijing's anti-graft body for "serious disciplinary lapses". Despite the return of the chairman, Yangzijiang's share price recovery was weak. Buying momentum remains sluggish, signifying that the market has lost confidence in the company. This was exacerbated by an unimpressive third quarter profit, which declined 10 per cent year on year.

Technical analysis