Mengniu Dairy (2319.HK) Challenges the Record High after Investment Banks Upgrade Its Rating
Medion Jim July 8, 2020 3:48 AM
Mengniu Dairy (2319.HK), Chinese dairy products manufacturer, challenges the record high after investment banks raised its rating.....
Mengniu Dairy (2319.HK), Chinese dairy products manufacturer, challenges the record high after investment banks raised its rating.
The company was upgraded to Outperform from Neutral at Credit Suisse. The bank assigned the target price at HK$40.
Besides, Citigroup also raised the target price of the company HK$41.27 from HK$39.05. Citigroup expected the company's sales growth is likely to continue, with sales expected to accelerate in June.
From a technical point of view, the stock, as shown on the daily chart, challenges the record high level at HK$34.60 after breaking above the declining trend line drawn from the record high.
Both 20-day and 50-day moving averages are pointing up, suggesting the positive outlook.
Bullish readers could set the nearest support level at HK$31.25 (the breakout point of declining trend line), while the resistance levels would be located at HK$37.40 (127.2% retracement level) and HK$40.95 (161.8% retracement level).
Source: TradingView, GAIN Capital
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.