US Listed Chinese Concept Stocks: The Two Struggling

From a technical analysis point of view, Weibo (WB) and Momo (MOMO) are the two struggling Chinese concept stocks...

Downtrend 1

Weibo (WB): Downtrend Intact

Source: TradingView, Gain Capital

Weibo (WB), a Chinese microblogging website, remains on the downside as shown on the daily chart. Despite a recent rally, it is capped by a bearish trend line drawn from April last year. The level at $40.40 might be considered as the nearest resistance, with prices likely to retreat to the 1st and 2nd support at $32.50 and $28.90 respectively. Alternatively, a break above $40.40 would suggest an upturn and trigger an advance to the next resistance at $45.80.  

Momo (MOMO): Lack of Strong Bullish Reversal Signals

Source: TradingView, Gain Capital

Momo (MOMO), a mobile-based social networking platform, has yet to show a strong enough bullish reversal pattern. Despite the fact that there is a daily RSI bullish divergence, it remains capped by a declining trend line drawn from April. Unless the key resistance at $22.00 is surpassed, prices risk breaking the nearest support at $16.60 and drop further to test the next support at $15.30. Alternatively, a break above $22.00 might trigger a further rebound to the next resistance at $23.60.

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.