CFD Trading – Buy Geely Auto (175.HKE) at $21.30. Stop at $20.00 and Target at $24.30.

GEELY AUTO   Stock Code 175.HKE

Outlook
Price has been declining after reaching a high at HK$24.50 on 24 November. The decline has reached the support provided by the Base line, which is acting as support at the moment. This support level also coincides with the Fibonacci 50% correction point of Oct-Nov 20’s rally. The MACD is still strong and bullish, suggesting that this decline is just a correction. Conversion and Base lines had a bullish crossover earlier, hinting of a bullish price trend. We see price rebounding from this relatively strong support to retest the high again, if it manages to stay above the Base line.

Strategy                  
$21.30               Buy
$24.30              Price Target
$20.00              Risk Management Stop
1 week               Trade Duration

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