Geely Automobile Classical Strong Bullish Pattern

Geely Automobile (175.hk): Classic Bullish Pattern

Geely Automobile (175.hk), a Chinese vehicle manufacturer whose share price has been lagging behind its peers BYD, has surged more than 20% so far this week.

Earlier this week, the Chinese government announced plans to target 20% ratio of new energy vehicle to total vehicle sales by 2025 and to provide financial support for building electric vehicle charging piles.

Meanwhile, Citigroup raised Geely Automobile's and its high-end LK brand vehicle sales volume forecast to 1.60 million units, or 23% growth year-on-year, and lifted the stock's target price to $41 from $30 previously.

From a technical point of view, Geely Automobile's (175.hk) upside momentum remains strong as shown on the daily chart. It has broken above a classical bullish cup and handle pattern, and has just surpassed July's high. The level at $17.00 might be considered as the nearest support, while the 1st and 2nd resistance are expected to be located at $22.00 and $25.00 respectively.

Source: GAIN Capital, TradingView

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.