CK Hutchison Holdings (0001 HKG)
click to enlarge charts
Key Levels (1 to 3 weeks)
Pivot (key resistance): 73.00
Supports: 64.30 & 59.80
Next resistance: 79.10
Directional Bias (1 to 3 weeks)
Bearish bias below 73.00 key medium-term pivotal resistance for another round of potential impulsive downleg to retest 15 Aug 2019 low of 64.30 before targeting the next significant medium-term support at 59.80.
However, a clearance with a daily close above 73.00 invalidates the bearish scenario for a continuation of the corrective rebound towards the major resistance at 79.10 (former swing low areas of Oct 2011/Jun 2016 & upper boundary of the primary descending channel from Jan 2018 high).
- CK Hutchison Holdings, ranked number 11th in the Hang Seng Index based on market capitalised, also chaired by Hong Kong’s richest man, Li Ka-Shing has been evolving within a primary downtrend in place since 26 Jan 2018 high of 107.00.
- The daily RSI oscillator remains bearish below a corresponding resistance at the 50 level after a test and retreat from it. These observations suggest that medium-term downside momentum remains intact.
- The key medium-term resistance stands at 73.00 which is defined by the upper boundary of a medium-term descending channel from 09 Apr 2019 high and former swing low areas of 04 Jan/30 May 2019).
- Today, 27 Aug price action is considered as negative as it has staged a push up to fill up the “gapped down” formed on Mon, 26 Aug and ended the session with a bearish daily candlestick.
- The significant medium-term support rests at 59.80 which is defined by the intersection point of the primary and medium-term descending channels and the former major swing low area of Oct 2008.
- Relative strength analysis of CK Hutchison Holdings against the market (Hang Seng Index) is still not showing any clear signs of reversal from its underperformance.
Charts are from eSignal
GAIN Capital UK Limited (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.