China National Building Material Co (CNBM) Stock Code 3323.HKE
The rebound from the low of HK$8.74 was resisted by the Fibonacci 50% correction point of Aug-Oct 20’s rally. This has also created a mini Double Top chart formation. Price has also broken below the neckline of this chart pattern, confirming the reversal. A Falling Three Methods candlestick price pattern adds to the bearish view. This resistance level is strong as the cloud comes in as another resistance point at this level as well. Price could be heading lower if it further violates the Base line support. MACD is bullish now but there is a bearish crossover that hints for the downside ahead. We see price heading lower to the next support point at HK$9.09.
$9.10 Price Target
$11.10 Risk Management Stop
1 week Trade Duration