Kong (no king) PRE DOWNGRADE INITIATION
Price
and moving averages:
Kong
Zhong has closed below its short term moving average.
Short
term moving average is currently below mid term, BUT above long term moving
averages.
The
relationship between price and moving averages is: bearish in short term, and
neutral to cautionary in mid-long term.
Bollinger
Bands:
Kong
Zhong has closed above bottom band by 30.9%.
Bollinger
Bands are 51.6% narrower than normal.
The
narrow width of the bands suggests low volatility as compared to 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 4 bars. The probability of a significant price move increases
the longer the bands remain in this narrow range.
Volume: a good day for this
ticker is near 1,500 – it traded 2/3rds of that last night while dropping 1.9%;
even on an uptick during the end of May the ticker had trouble with 1,000
shares changing hands. Nobody likes me, everybody hates me, so I think I’ll go
eat wooor---eeerrr-errms….
Current
rating is:
0
Tech ratings are 3 to -3 indicating bullish to bearish; a zero is neutral to
cautionary.
Stochastics
show selling to continue and our unpublished trend strength is near 0. Combined
with the other negative to mixed data, we expect to downgrade KONG very
shortly.
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.
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