hong kong shares highlights lenovo group 112782015

Lenovo Group (HKG: 0992) – Showing potential signs of “bottoming out” above 9.91 support Key elements Since 20 November 2011, Lenovo has traced out […]

Lenovo Group (HKG: 0992) – Showing potential signs of “bottoming out” above 9.91 support

Key elements

Since 20 November 2011, Lenovo has traced out a bullish reversal chart configuration called “Inverse Head & Shoulders” with its neckline resistance at 11.00.
The decline from its 10-year high of 12.70 printed on 08 September 2014 has managed to find a “floor” on the short-term trendline support (in dark purple) in place since26 February 2014.
The exit potential of the “Inverse Head & Shoulders” configuration stands at 12.42.
The 20 and 50-day Moving Averages are coming to support the stock at around 10.28.
The 11.60 resistance also confluences with a Fibonacci cluster.

Key levels (1 to 3 months)

Intermediate support: 10.28

Pivot (key support): 9.91

Resistance: 11.00, 11.60 & 12.42/12.70

Next support: 9.05

Conclusion

Elements advocate for a “bottoming out” where Lenovo is likely to see the continuation of its long-term bullish trend in place since late February 2009. As long as the monthly pivotal support at 9.91 holds, a break above 11.00 is likely to reinforce an upside movement towards 11.60 before 12.42/12.70.

However, failure to hold above 9.91 may jeopardise the bullish tone to see a slide to test the long-term trendline support at 9.05.

Source: Charts are from eSignal

Disclaimer

The information contained in this material is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs. All queries regarding the contents of this material are to be directed to City Index Asia Pte Ltd.

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