Medium-term technical outlook (1-3 weeks) on ACC Technologies (HKG 2018)
Key technical elements
- The share price of AAC Tech has continued to evolve within its primary/major downtrend in place since its 185.00 all-time high printed on 13 Nov 2017.
- Momentum as indicated by the daily RSI oscillator remains negative as it is capped by a significant corresponding resistance at the 47 level without any bullish divergence signal.
- Volume has continued to increase steadily since its recent decline from 31 Oct 2018.
- The key medium-term resistance stands at 72.50 as defined by the upper boundary of a medium-term descending channel from 21 Mar 2018 high, pull-back resistance of the former primary/major descending channel support from 13 Nov 2017, the gapped down formed on 10/11 Oct 2018 & 23.6% Fibonacci retracement of the down move from 07 Jun 2018 high to 26 Oct 2018 low
Key Levels (1 to 3 weeks)
Intermediate resistance: 66.75
Pivot (key resistance): 75.50
Supports: 47.60/44.00 & 34.00/31.90
Next resistances: 102.80 & 110.80
The major downtrend of AAC Tech remains intact and if the 75.50 key medium-term pivotal resistance is not surpassed, ACC Tech is likely to see a continuation of its medium-term impulsive down move to target the next supports at 47.60/44.00 and 34.00/31.90 (Fibonacci projection & close to the lower boundary of the medium-term descending channel in place since 21 Mar 2018 high).
On the other hand, a clearance above 75.50 invalidates the bearish scenario for a corrective rebound towards the next resistances at 102.80 and 110.80 (the pull-back resistance of the former major ascending support from 24 Aug 2015 low & upper boundary of the primary/major descending channel from 13 Nov 2017 high).
Charts are from eSignal
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.