Lion Diversified was in the headline on & off for the past 6 months since its subsidiary, Parkson Retail Group Ltd was listed on the Main Board of the Hong Kong Stock Exchange. From a low of RM3.70 on June 14, 2006, Lion Diversified share price rose to a high of RM6.70 on December 1, 2006. Thereafter, the share price started to correct some of its gain. On January 8 (two days ago), the share tested its immediate uptrend line (aa) at the RM5.80 level but the share failed to re-bound convincingly. Today, it has broken below this uptrend line (aa) as well as tested its next uptrend line (AA) at the RM5.45 level at 3.15 p.m. The RM5.45 level is also a strong horizontal support level. There is a good chance that this stock may rebound from here.
Lion Diversified could be a good trading candidate. Nevertheless, you need to put a protective stop at RM5.30 (i.e. 3% below the immediate support) in case the share were to drop & break through the current uptrend line (AA) at the RM5.45 level. On a upswing, this share may hit RM6.00/20.
Chart: Lion Diversified's daily chart as at January 9
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