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Harry Boxer's Charts of the Day

CAAS, CAGC, CGA, CLWT, SEED, VISN - Stock Charts to Watch


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Today I’m going to focus in on the Chinese sector as the stocks appear to be the hottest group on Wall Street right now. Starting with China Automotive Systems, Inc. (CAAS), a stock we’ve highlighted many times, on Monday it broke out of the 2-week flag pattern, culminating with a low-volume ebb. The stock followed through today and it ran up to 22.13, backed off to 20.51, still up 1.16 on the day, although it did give up a good chunk of it.

Charts of the Day
The focus today is on the Chinese sector as the stocks appear to be the hottest group on Wall Street right now...

As you can see from the long-term chart and a rising channel, the stock has taken out the top of that channel, busted through key overhead resistance, and gone to a new all time high, taking out the 2003-04 highs. That’s a significant technical occurrence and certainly one that could lead to higher prices. We’re looking for something in the mid-to-high 20s possibly over the next few weeks or maybe even next few days.

China Agritech Inc. (CAGC), a fairly new IPO, exploded in early October, backed off, and then came on again and double-topped in this area. Today it made a significant move, jumping 3.60 or 19% on nearly a million shares. That’s the heaviest volume since the IPO. At this point looks to me like it can move into the mid-to-high 20s as well.

China Green Agriculture Inc. (CGA), a stock that we’ve been following for several months since it was down in the mid single digits, broke out, spent 2 months consolidating, broke out again, consolidated for 3 1/2 months, then 2 weeks ago broke out on heavy volume, and sat there and flagged for about 6-7 days. Today it popped, reached up to 17.79. That’s a new 52-week high, and although it did back off to 16.57, it was still up 57 cents on the day on 2 1/2 million shares and may be coming on at this point to higher levels. The top of the channel measures upward of the 31 zone. That’s nearly double from where we are now and it wouldn’t surprise me if it eventually made it up there.

Euro Tech Holdings Company Ltd. (CLWT) has been hot of late after they announced the potential IPO of their Chinese water division. As you can see, the stock exploded on heavy volume 4 days ago, backed off and then came on again the last 2 sessions, today gaining 23 cents, although 58 cents off its high, on 3.5 million shares. Quite heavy volume for that stock, the heaviest volume we’ve seen going all the way back 2 or 3 years, at least. So, that’s quite an eventful day for it. There are multiple tops up in the 5 1/2 – 6 1/2 zone, so I’m expecting this stock could make a move up toward that zone, although it is at the top of the channel and one of the reasons why it backed off today.

Origin Agritech Ltd, (SEED), one of the stars for the week so far, had a spectacular run Monday of 2 1/2 points, 23% on 31.8 million. Today it calmed down a little bit. It had jumped earlier on to 14.57, a new rally high, but backed off substantially and closed up for the day but just barely. However, the overall pattern is strong and could still lead to higher levels in the 16 - 18 zone.

VisionChina Media, Inc. (VISN) is a stock we just added to our model portfolio today. Here’s why. A beautiful one-year base, breakout, 6 to 8 weeks consolidation, and today the declining tops line was taken out with volume, the heaviest volume in about 6-7 weeks, and it closed for the high today going away. I expect possibilities exist that this stock makes it up towards the 12, then maybe the 14 1/2 range, our targets.

So, there’s some Chinese stocks for you. We’ll see how they do over the next few days.

Other Chinese stocks on Chart of the Day are: China Marine Food Group Ltd. (CMFO), China Yuchai International Ltd. (CYD), Kandi Tech Group (KNDI), Tianyin Pharmaceutical Co. (TPI), Tri-Tech Holdings Inc. (TRIT), and Telestone Technologies Corp. (TSTC).

That’s it for today.