Outlook
Price has been moving lower after hitting a high of HK$22.70. A price rebound occurred but this rebound was capped by the base line resistance as well as the upper edge of the cloud. There was a bearish Conversion and Base lines crossover that hints for potential downside ahead. Lagging Span is below price of 26 periods ago but is currently still above the cloud and is unable to confirm the bearish trend in progress. MACD has turned bearish and there is a bearish MACD crossover. We could see a deeper correction if price breaks below the lower edge of the cloud, which is also the recent low of HK$16.94. A break of this support is likely to send price lower to HK$14.40.
WEIGAO GROUP Stock Code 1066.HKE
Strategy
$16.90 Sell
$14.40 Price Target
$18.80 Risk Management Stop
2 weeks Trade Duration
