KONG - as we thought

June 5th we posted our initial coverage note as a "pre-downgrade"; that downgrade happened quickly. At that time, our exponential moving averages weren't giving a clear picture, MACD was drifting, RSI was weakish and stochastics were weak, but not giving guidance. That changed Friday and Monday to put this name near our most bearish rating with a score of -2.5.

Price and moving averages:
KONG (Kong Zhong) has closed below its short term moving average. 
Short term moving average is currently below mid term, and below long term moving averages.
Mid term moving average is currently below long term
The relationship between price and moving averages is: bearish in short term, and bearish in mid-long term. 

Bollinger Bands:
KONG(Kong Zhong) has closed above bottom band by 13.4%. 
Bollinger Bands are 40.9% narrower than normal.
The narrow width of the bands suggests low volatility as compared to KONG(Kong Zhong)'s normal range.  Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term. The bands have been in this narrow range for 8 bars. The probability of a significant price move increases the longer the bands remain in this narrow range. They have widened just a tad over the last trading day.

CCI is now in the negative range of -103.152

MACD
Crossovers:
Currently MACD is bearish since it is trading below its signal line.
MACD crossed below its signal line 1 period ago.
Since MACD crossed its moving average, KONG's price has decreased -0.90%
and has ranged from a high of  9.27 to a low of  8.75
Overbought/Oversold:
MACD is not in an Overbought/Oversold range.
Divergence:
There have been no divergence signals within the last 5 periods.

Current rating is -2.5

Tech ratings are 3 to -3 indicating bullish to bearish; a zero is neutral to cautionary.

This commentary is not a recommendation to buy or sell. Use at your own risk.

Disclosure: the firm does not currently hold a position in this stock and has no plans to create a long or short position over the next 5 business days.