Shimao Property (813-hk): Consolidate before Next Rally

Shimao Property (813-hk), a Chinese real estate group which was added to the Hang Seng China Enterprises Index in June, climbed to a record high at $37.20 this week.

Uptrend 4

Shimao Property (813-hk), a Chinese real estate group which was added to the Hang Seng China Enterprises Index in June, climbed to a record high at $37.20 on Monday and reached our forecast made in late May.

In fact, the company has been benefited from the recovery in China's economic activity which led to a rebound in property demand. Last week, company announced that contracted sales rose 6.4% on year to 30.2 billion yuan in June and were up 10.1% to 110.48 billion yuan in the first half of the year.

From a technical point of view, Shimao Property might continue to trade within a bullish consolidation range before starting a new rally. Previously, it has rebounded after retreating to its previous high marked in April and January, suggesting that the prior resistance now acts as a support. Bullish investors may consider $30.90 as the nearest support, which is also the 61.8% Fibonacci retracement support of the rally started in March, and a break above the nearest resistance at $37.45 would open a path to the next resistance at $42.10. Alternatively, a break below $30.90 might trigger a pull-back to the next support at $26.85.

Source: TradingView, Gain Capital

Build your confidence risk free

More from Stocks

Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.