View of The Day: 902 Huaneng Power International Inc

I mentioned 902 Huaneng Power more than a few times (25 January 2010; 30 December 2009 and 17 December 2009). This time I do not talk about fundamentals. Let's try my 1% a day theory - I will make a time frame of 1 week for this safer stock. The Stochastic indicator (STC) - the second graph below - shows that it is about to come to a buy signal - when the blue line, now at 24.14, overtakes the red line which is now at 25.2 - and the low STC indicates a possible oversold situation (though it can't be absolutely sure it is a good way to see if my theory works). In the meantime, RSI has flattened out and started to go up. Buy at current price ($4.50-ish) and see if we can take a 3-5% profit - Capital committed may be around $50,000-60,000, aiming at a profit of $1,500-1,800 (before costs). Time frame: 1 week. If price continues to go up quickly above $ 4.68 (the 100-day moving average), perhaps we can wait a bit to aim for a 10% profit.

Source: ET Net Hong Kong