China Gas (384-hk): Potential Rebound
George Lam July 2, 2020 10:10 PM
China Gas's share price has dropped about 30% from the high of November last year, however China's indicators showed a rebound in economic activity since March...
China Gas (384-hk), a Chinese natural gas company, recently announced that full-year net income rose 11.7% on year to 9.19 billion yuan on revenue of 59.54 billion yuan, up 0.3%. The company proposed a final dividend of 0.40 Hong Kong dollar per share, taking full-year dividend to 0.50 Hong Kong dollar per share, up 13.6% from the prior year.
China Gas's share price has dropped about 30% from the high of November last year, amid coronavirus outbreak. However, as China's indicators showed a rebound in economic and industrial activity since March, the coronavirus impact on the current full-year earnings might not be as big as investors would have thought initially.
From a technical point of view, China Gas's share price shows signs of stabilizing after approaching its previous low as shown on the daily chart. In fact, it has reached the lower boundary of a long-term symmetrical triangle, while the relative strength index shows a bullish divergence. Bullish investors might consider $22.30 as the nearest support, with prices likely to rebound to test the 1st and 2nd resistance at $27.10 and $28.90. Alternatively, a break below $22.30 would be a bearish signal and may open a path to the next support at $19.70.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.