Geely Automobile (175.hk): Consolidation before the next rally
George Lam November 12, 2020 3:14 AM
Geely Automobile's (175.hk) upside momentum remains solid despite a modest pull-back.
China Association of Automobile Manufacturers (CAAM) reported that China's auto sales rose 12.5% on year in October to 2.57 million units and year-to-date sales decline narrowed to 4.7% from 6.9%. CAAM said a steady and sustainable recovery is expected for the automotive market.
Meanwhile, Geely Automobile announced that vehicle sales increased 8% on year to 140,026 units in October and totaled 1.0155 million units in the first ten months of the year (-7% on year), achieving 77% of its full-year target.
From a technical point of view, Geely Automobile's upside momentum remains solid despite a modest pull-back. It has retreated after reaching the 1st resistance of our previous forecast, but stabilized after reaching the 38.2% Fibonacci retracement support of the most recent rally. The level at $17.50 might be considered as the nearest support, while a break above $22.00 would open a path to the next resistance at $25.00.
Source: GAIN Capital, TradingView
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.