Air China (753.HK): Waiting for the Breakout Signal
Air China (753), a major Chinese airline, announced that passenger traffic declined 69.1% on year in May and the overall passenger load factor was 67.5%, down 12.7 percentage points.
In fact, the U.S. government further eased the restriction of Chinese airlines on this Monday after China said it would allow more passenger flights by the U.S. airlines. The U.S. Department of Transportation said it would allow a total of four-trip flights a week by Chinese airlines, double the level it had set earlier this month.
From a technical point of view, as shown on the daily chart, the stock has formed a bottom at HK$4.50 with the bullish divergence signal from RSI. After that, the prices broke above the bearish trend line drawn from January top. However, the prices failed to penetrate the previous high at HK$5.60.
Currently, the prices are ranging between HK$4.50 and HK$5.60. A breakout signal is needed to confirm the direction of the stock.
On the upside, a break above HK$5.60 would consider a rise to HK$6.70 (100% measured move of current consolidation zone).
On the downside, losing the support level at HK$.4.50 would trigger a drop to HK$3.40 (100% measured move of current range.).
Sources: GAIN Capital, TradingView
In fact, the U.S. government further eased the restriction of Chinese airlines on this Monday after China said it would allow more passenger flights by the U.S. airlines. The U.S. Department of Transportation said it would allow a total of four-trip flights a week by Chinese airlines, double the level it had set earlier this month.
From a technical point of view, as shown on the daily chart, the stock has formed a bottom at HK$4.50 with the bullish divergence signal from RSI. After that, the prices broke above the bearish trend line drawn from January top. However, the prices failed to penetrate the previous high at HK$5.60.
Currently, the prices are ranging between HK$4.50 and HK$5.60. A breakout signal is needed to confirm the direction of the stock.
On the upside, a break above HK$5.60 would consider a rise to HK$6.70 (100% measured move of current consolidation zone).
On the downside, losing the support level at HK$.4.50 would trigger a drop to HK$3.40 (100% measured move of current range.).
Sources: GAIN Capital, TradingView
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