Published on Wed, 09/14/2011 - 06:50
By Adrienne Chilton in Candlestick, CISG, bullish am engulfing candle, cninsure,

Analysts have spotted a possible bullish engulfing pattern in CNinsure (NASDAQ:CISG) based on the price action in the company’s shares. Yesterday, CNinsure traded 179,000 shares vs. average volume of 462,000 shares per day. The company traded 138,000 shares on Monday. Heavy volume increases the reliability of this bullish candlestick pattern.

There is a potential upside of 97.4% for shares of CNinsure based on a current price of $10.58 and an average consensus analyst price target of $20.88. The stock should find initial resistance at its 50-day moving average (MA) of $13.00 and further resistance at its 200-day MA of $15.21.

Over the past year, CNinsure has traded in a range of $9.22 to $26.74 and is now at $10.58, 15% above that low. The 200-day and 50-day moving averages have moved 1.01% lower and 1.95% lower over the past week, respectively.

CNinsure, Inc. operates an independent insurance agency and brokerage company. The Company provides insurance-related services, such as claim assessments and 24-hour emergency services, but do not assume underwritting risks. CNinsure, instead, distributes to their customers in China, insurance products underwritten by domestic and foriegn insurance companies operating in China.

By Adrienne Chilton