Geely Automobile (175.hk): Consolidation before the next rally
George Lam November 11, 2020 10:14 PM
Geely Automobile's (175.hk) upside momentum remains solid despite a modest pull-back.
China Association of Automobile Manufacturers (CAAM) reported that China's auto sales rose 12.5% on year in October to 2.57 million units and year-to-date sales decline narrowed to 4.7% from 6.9%. CAAM said a steady and sustainable recovery is expected for the automotive market.
Meanwhile, Geely Automobile announced that vehicle sales increased 8% on year to 140,026 units in October and totaled 1.0155 million units in the first ten months of the year (-7% on year), achieving 77% of its full-year target.
From a technical point of view, Geely Automobile's upside momentum remains solid despite a modest pull-back. It has retreated after reaching the 1st resistance of our previous forecast, but stabilized after reaching the 38.2% Fibonacci retracement support of the most recent rally. The level at $17.50 might be considered as the nearest support, while a break above $22.00 would open a path to the next resistance at $25.00.
Source: GAIN Capital, TradingView
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.