Sands China Breaks Below the Rising Channel

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By :  ,  Financial Analyst

Sands China (1928.HK) Breaks below the Rising Channel

Hong Kong's Hang Seng Index and China's Shanghai Composite index slumped around 2% on the rising tension between the U.S. and China.

Sands China (1928), a Casino group, reported that 2Q net income swung to the net loss of $549 million from the net income of $511 million in the same period of 2019 on revenue of $28 million, slumping 96.7%.

Besides, HSBC Global Research saw a recovery of pent-up demand as Macau will relax its border curbs going ahead, believing the company  could seize the opportunity for travel demand revival.

In addition, Citigroup commented in its report that the company  had delivered 2Q20 Macau revenue and property EBITDA largely in-line.

From a technical point of view, the stock broke below the rising channel, indicating a bearish reversal signal on a daily chart. 

Both 20-day and 50-day moving averages are turning flattening, suggesting the loss of upward momentum for the prices.

Bearish readers could set the resistance level at HK$33.55 (the previous high), while the support levels would be located at HK$28.25 

Source: GAIN Capital, TradingView
Related tags: Equities Stocks

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