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Featured Trade HK Stock AAC Tech downtrend remains intact

Article By: ,  Financial Analyst
November 8, 2018 6:22 AM

Medium-term technical outlook (1-3 weeks) on ACC Technologies (HKG 2018)


Key technical elements

  • The share price of AAC Tech has continued to evolve within its primary/major downtrend in place since its 185.00 all-time high printed on 13 Nov 2017.
  • Momentum as indicated by the daily RSI oscillator remains negative as it is capped by a significant corresponding resistance at the 47 level without any bullish divergence signal.
  • Volume has continued to increase steadily since its recent decline from 31 Oct 2018.
  • The key medium-term resistance stands at 72.50 as defined by the upper boundary of a medium-term descending channel from 21 Mar 2018 high, pull-back resistance of the former primary/major descending channel support from 13 Nov 2017, the gapped down formed on 10/11 Oct 2018 & 23.6% Fibonacci retracement of the down move from 07 Jun 2018 high to 26 Oct 2018 low

Key Levels (1 to 3 weeks)

Intermediate resistance: 66.75

Pivot (key resistance): 75.50

Supports: 47.60/44.00 & 34.00/31.90

Next resistances: 102.80 & 110.80

Conclusion

The major downtrend of AAC Tech remains intact and if the 75.50 key medium-term pivotal resistance is not surpassed, ACC Tech is likely to see a continuation of its medium-term impulsive down move to target the next supports at 47.60/44.00 and 34.00/31.90 (Fibonacci projection & close to the lower boundary of the medium-term descending channel in place since 21 Mar 2018 high).

On the other hand, a clearance above 75.50 invalidates the bearish scenario for a corrective rebound towards the next resistances at 102.80 and 110.80 (the pull-back resistance of the former major ascending support from 24 Aug 2015 low & upper boundary of the primary/major descending channel from 13 Nov 2017 high).

Charts are from eSignal




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