Guangzhou R&F Properties Slumped on Bad 1Q Result
Medion Jim May 4, 2020 6:19 AM
Guangzhou R&F Properties (2777) slumped around 5.5% after announcing its 1Q result......
Guangzhou R&F Properties (2777) slumped around 5.5% after announcing its 1Q result. Meanwhile, the Hang Seng index plunged around 4.0% on the worry of the U.S. - China relationship.
Guangzhou R&F Properties, a real estate group, reported that 1Q net income plunged 83.5% on year to 67 million yuan on operating revenue of 9.79 billion yuan, down 4.9%.
On a daily chart, the technical outlook of the stock would be bearish as the prices are trading below the declining trend line drawn from January top and both 20-day and 50-day moving averages. Currently, the prices are expected to test $9.14 (61.8% retracement level of current rebound and the low of April 22). The RSI has failed to penetrate the neutrality level and is turning downward. It suggests that the downward momentum for the prices remain intact. Therefore, as long as $9.85 is not surpassed, the stock would consider a return to $8.74 (78.6% retracement level of current rebound) and $8.23 (the low of March).
Alternatively, a break above $9.85 would suggest a bullish breakout of the declining trend line and trigger a rebound to $10.62 (the high of April).
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.