Medium-term technical outlook on Citi Securities (HKG: 6030)
Key technical elements
- The recent 9.8% pull-back/consolidation from its 21 September 2017 high of 18.74 has stalled right above a key medium-term support of 16.80.
- The aforementioned 16.82 key medium-term support is defined by the pull-back support of a former descending trendline resistance from 09 November 2015 high, the recent swing low area of 06/14 September 2017 and a Fibonacci cluster.
- Today’s (07 Nov) price action has staged a rebound from the 16.82 medium-term support coupled with an increase in today’s (07 Nov) volume that is higher on the average of the previous three days and the daily RSI oscillator that has staged a rebound from its corresponding significant support at the 42% level. These observations suggest that upside momentum of price action has resurfaced.
- The next significant medium-term resistance stands at 19.42 which defined by the swing high areas of 23 Dec 2015/14 Apr 2016 and the upper boundary of the ascending channel that has taken shape since 21 August 2017 low.
Key levels (1 to 3 months)
Pivot (key support): 16.80
Resistances: 19.42 & 20.45
Next support: 15.47
Therefore, as long as the 16.80 key medium-term pivotal support holds, Citi Securities may see the start of another potential medium-term bullish upleg to target the next resistance at 19.42 in the first step.
However, failure to hold above 16.80 shall invalidate the bullish scenario for an extension of the corrective decline to retest the major range support of 15.47 (in place since 23 Dec 2016).
Chart is from eSignal
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