Citic Securities Waiting a breakout of the flag pattern
Citic Securities (6030.HK): Waiting a breakout of the flag pattern
Securities Association of China reported that 134 Chinese brokers posted turnover of 213.4 billion yuan in 1H and total net profit amounted 83.16 billion yuan. The association also said 124 brokers were profit making.
Last night, Citic Securities (6030), a top Chinese securities broker, reported that 1H net income rose 38.1% on year to 8.86 billion yuan on revenue of 26.74 billion yuan, up 22.7%.
On a daily chart, the stock jumped around 45% from June's close price at HK$14.66 to high of July at $21.42. After the stock prices are easing and trading within the flag pattern. Investors should focus on the breakout signal of the flag pattern.
Currently, the stock is holding above the 50% retracement level between the July's high and the May's low.
The relative strength index is supported by a rising trend line drawn from March, suggesting the upward momentum is still holding.
Bullish readers could set the nearest support level at the recent low at HK$17.20, while the resistance level at HK$19.68 and HK$21.42. A break above HK$21.42 may consider another rise to the measured move level of the flag pattern at HK$24.20.
Source: GAIN Capital, Trading View
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