Shanghai Pechem (00338.HK)

Trading Sell

Last price: HK$2.43

Resistance: HK$2.60

Support: HK$2.27/2.13

Shanghai Pechem closed lower at HK$2.43 in a long dark candle yesterday, short of the 0.38x retracement level at HK$2.41.

Given that the Slow Stochastics has breached the previous low and the MACD is under the centreline, the stock is likely to test the 0.5x retracement level at HK$2.27.

If the stock breaches this support, it will then test the 0.62x retracement level of HK$2.13.

Expected Timeframe: 2 weeks to 2 months

 

Wisdom Group (01661.HK)

Trading Sell

Last price: HK$5.47

Resistance: HK$5.65

Support: HK$5.22/4.96

Wisdom Group gapped down to re-enter the moving average envelope yesterday on strong volume.

With reference to the downside bias of both the Williams’ %R Indicator and the ROC, we expect the stock to test the moving average of the envelope at HK$5.22.

If the stock crosses below the moving average of the envelope, it will then test the lower band of the envelope at HK$4.96.

Expected Timeframe: 2 weeks to 2 months

 

Citic Securities (06030.HK)

Trading Sell

Last price: HK$18.40

Resistance: HK$19.02

Support: HK$17.48/17.00

Citic Securities closed lower yesterday in a dark candle at HK$18.40 in the wake of the emergence of the doji candle.

In light of the bearish divergence of the ROC and the turning south of the Williams’ %R Indicator, the stock is likely to test the previous low at HK$17.48.

If the stock penetrates this support, it will then test the psychological support at HK$17.00.

Expected Timeframe: 2 weeks to 2 months