Description: China Milk Products Group supplies raw milk, pedigree bull semen, and
pedigree dairy cow embryos for embryo transfer.
Immediate outlook: The stock is now facing some major resistances. Technical indicators
have flattened out earlier but they are starting to inch up again. If the stock is able to
overcome the trend line resistance (at S$0.83) and its 100-day SMA (at S$0.85) then it
could rally further from here. Technical Buy now ahead of the breakout. Buy at S$0.79-
0.82. Put a tight stop below the S$0.765 level, just in case the trade turns sour. Upside
target is S$0.97-1.00.
Medium term outlook (2-6 months): The stock is now testing its long term trend line
support turned resistance and its trend line resistance at S$0.83. Again, the stock has to
overcome both of these resistances before an uptrend can ensue. Looking at its indicators,
the momentum still appears strong. Hence it is still a good possibility that the stock can
overcome the tough resistance in the coming week. LT investors could either choose to
buy half now and buy the rest on breakout or wait for the breakout before jumping in. If the
stock is able to breach the resistances, it could be heading towards S$1.16-1.20 in the
medium term. However, trade cautiously and keep a tight stop.
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