Sinopec Corp Stock code 386.HKE
Outlook
Price has been trying to cover the gap but was unable to move above the resistance at HK$5.40. In three attempts, price was unable to move above HK$5.40. Price is below the cloud and is currently resisted by both the Conversion and Base lines. If price is unable to move above the resistance at HK$5.40, it is likely to test the base at HK$5.01. MACD’s slow line is still bearish and the fast line seems to be turning around and moving lower. MACD histogram is also turning down after reaching its peak. The MACD indicator is hinting of an impending price decline. We think price is likely to test the base at HK$5.01
Strategy
HK$5.33 Short Sell
HK$5.01 Price Target
HK$5.55 Risk Management Stop
3 weeks Trade Duration
GreatWall Motor Stock Code 2333.HKE
Outlook
Price is at the upper end of the Bollinger Bands and for the past two days, two strong green candles were trying to push price above the band. Before the rally, price had built a base with two lows formed near to the lower band. Price should be moving higher and if it can break above the band, it could move higher to 6.71 which is the Fibonacci 161.8% retracement of the rally from HK$5.05 to the high at HK$6.07. MACD has turned bullish with both lines crossing above the Zero line. Momentum is strong and this could carry price higher to HK$6.71.
Strategy
HK$6.01 Buy
HK$6.70 Price Target
HK$5.60 Risk Management Stop
3 weeks Trade Duration
