STOCKWATCH: Wah Tak Fung nears over-buying; take profit at high for mid-term

Wah Tak Fung Holdings (0297) rallied over the news of the acquisition recently and even created a 52-week new high of HK$0.355 this morning on a vivid turnover. It is expected to test higher level in the predictable future and to face considerable pressure at the high stance of HK$0.465 of early 1999. However, from the short-term technical indicators shape, RSI has approached the high-stance over-buying zone of 80 and a strong consolidation is required technically. Investors are advised to make short-term investment and take profit at high. Stop loss at HK$0.3 for short-term.

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