E-House (China) Holdings Limited (ADR) (NYSE:EJ) With A Bullish Engulfing Candle

Boston, MA, 04/23/2014  (usastockreport) –   E-House (China) Holdings Limited (ADR)(NYSE:EJ) on the daily charts is showing first signs of a bounce back from the downtrend that it has seen over the last couple of months. The stock took support at the long term support zone at $10 and the 200 day moving average which currently is at 10.28 and has managed to close above it. The stock has formed a bullish engulfing pattern on the daily charts which is a bullish buy signal and we believe the stock can go higher from here. If the stock is able to close above the resistance zone at $11, we see the stock going towards levels of $11.70 in the very short term.

The momentum indicators for the stock, though in negative territory are showing first signs of a crossover which confirms our bullish bias at the current juncture. The up move seen in the stock has been on the back of good volumes which also points towards the bullish momentum in the stock at the current moment. The relative strength index for the stock is also showing signs of a bullish reversal and is showing signs of inherent bullishness.

On the weekly charts for E-House (China) Holdings Limited (ADR)(NYSE:EJ) the stock has very good support at $9.69 which is its 50 day weekly moving average. The weekly charts are showing a golden cross which is a bullish indicator and thus confirms our bullish stance on the stock in the medium term. Though the momentum indicators are still bearish, we are seeing first signs of a bullish move in the RSI.

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(Figure): Daily chart for E-House (China) Holdings Limited (ADR)(NYSE:EJ)

Latest Buzz: E-House (China) Holdings Limited (ADR)(NYSE:EJ) announced a strategic partnership with Tencent Holdings, which would acquire its stake in its subsidiary called Leju. Tencent would acquire this stake in Leju for a total of $180 million.

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