TECHNICAL ANALYSIS is a service provided by our expert Christian LEYDET. Christian has 30 years of experience at major houses.
Analysis of the Components of Portfolio
China Mobile Limited (0941.HK)
Our initial target @ HKD 53.49 was reached.
The 2-year downtrend is broken, providing a new support @ HKD 51.47
Rising bottoms giving strenght to the stock for un upward move.
Our next target @ HKD 60.34 is still on.
Buy on any weakness
China Telecom Corporation Limited (0728.HK)
Major resistance @ HKD 2.864
The stock has broken its two-year downtrend and is consolidating horizontally.
Short term double bottom with neckline right on the uptrend.
The stock needs more consolidation at these levels.
BUY STOP above HKD 2.864.
BAIC Motors Corporation Limited (1958.HK)
Neutral pattern unchanged since the beginning of 2021, within a significant triangle pattern.
Downtrend resistance @ HKD 3.22, a break of that trend line will signal the beginning of a new uptrend
Strong support @ HKD 2.60. Downside risk limited.
China Power International Development Limited (2380.HK)
Major downtrend broken with a series of higher lows.
Tentative breakout to the upside is a positive signal for a major trend reversal.
Short term strategy :
SELL Stop @ HKD 1.60 and BUY STP @ HKD 1.77
Long term strategy : Accumulate the stock on any weakness
China Railway Construction Corporation Limited (1186.HK)
The stock is bottomming out after a severe downtrend.
A first higher low followed by a trend breakout points to a trend reversal but it’s too early to be 100 % affirmative.
The stock is gaining upward momentum and needs confirmation above HKD 5.36
China Merchants Port Holdings Company Limited (0144.HK)
As previously stated, HKD 10.26 is a strong support (red line).
Volumes are still very strong on the upside.
This is the sign of a buy-on-weakness-attitude from investors.
Short term Target @ HKD 13.94.
China Minsheng Banking Corp., Ltd. (1988.HK)
Tentative bottom after a bear market with a vertical acceleration and a succession of rising bottoms.
HKD 4.919 is still a strong resistance that needs to be broken .
Short term uptrend still validated. Plenty of room above the red line.
Bank of Communications Co., Ltd. (3328.HK)
Support @ HKD 4.37.
Rising bottoms coupled with rising tops : bullish combination.
Our 1st target was reached on feb, 18.
Medium term target @ HKD 5.00
Accumulate the stock.
Agricultural Bank of China Limited (1288.HK)
Something will happen very soon.
Symmetrical triangle pattern never lies. Imminent breakout.
Strong buy signal.
Targets : HKD 3.08, HKD 3.18, HKD 3.499
Most of the stocks in our CHINA DEEP VALUE PORTFOLIO are in a secular bottoming pout process before a new secular uptrend develops.
Something is indeed happening in the Chinese banking sector with ALL the major banks in tentative breakout patterns.
Commonality – i.e. many stocks of the same sector behaving the same way – is a very strong signal, indicating that we are nearing a change of trend and we expect Chinese banks to outperform the global market in the coming months.
It is clearly just the beginning and we can only recommend our readers to consider investing in the CHINA DEEP VALUE PORTFOLIO through the Exane Index Certificate.
DISCLAIMER Mechelany Advisors FZ-LLC or www.mechelanyadvisors.com, is not a registered investment advisor, nor a capital management firm or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. Mechelany Advisors FZ-LLC operates as a private advisory and research company where we provide consulting services to pension funds, investments funds and private clients. Our analyses and conclusions are ours and they only clarify and highlight the investment rationale behind our own investment decisions. The analysts and employees or affiliates of Company may - and usually do - hold positions in the stocks or industries discussed here. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. You understand and acknowledge that there is a very high degree of risk involved in trading securities. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns. The indicators, strategies, columns, articles and all other features of Company’s products are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company’s website are for educational purposes only. Such examples are not solicitations of any order to buy or sell securities, commodities, investment products or engage into any kind of trading activities. Accordingly, you should not rely solely on the Information provided in making any investment decision. Rather, you should use the Information provided only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment. By navigating on our website or remaining on our subscription lists, you accept our terms and conditions and discharge us irrevocably form all responsibility.