AIA Group: Key Resistance level at HK$71.70
Medion Jim May 15, 2020 3:31 AM
AIA Group (1299), an insurance giant, reported that 1Q new business value dropped 28% on year....
AIA Group (1299), an insurance giant, reported that 1Q new business value dropped 28% on year (-27% at constant exchange rates) to 841 million dollars and annualised new premiums declined 19% (-18% at constant exchange rates) to 1.48 billion dollars. The Company said the decline of new business value was caused by the indirect impacts of the COVID-19 pandemic.From a technical point of view, the stock is capped by a declining trend line drawn from April 20 on a daily chart. The prices have formed a series of lower tops, suggesting that the rebound from March is possibly ended. In addition, both 20-day and 50-day moving averages are still declining. The RSI is capped by a falling trend line drawn from November 2019. Those technical indicators would suggest the negative outlook.
Therefore, the bearish readers could set the nearest resistance level at HK$71.70 (the previous reaction high). As long as this level is not surpassed, the stock could consider to fill the gap at HK$64.40 and return to the March low at HK$60.00.
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.