Guangzhou Automobile Group (2238.HK) Broke Below the Rising Channel
Medion Jim September 10, 2020 12:30 AM
Guangzhou Automobile Group (2238), a vehicle manufacturer, announced that vehicle production grew 7.8% on year to 166,315 units in August and sales were up 11.6% to 180,609 units.
Guangzhou Automobile Group (2238), a vehicle manufacturer, announced that vehicle production grew 7.8% on year to 166,315 units in August and sales were up 11.6% to 180,609 units. After the announcement of the sales data, the stock rebounded 3% yesterday. However, the stock prices failed to follow yesterday's rise.
Recently, the company reported that 1H net income slumped 53% to 2.32 billion yuan on revenue of 25.4 billion yuan, dropping 9.6%.
From a technical point of view, the stock broke below the rising channel drawn from July. The 20-day moving average is also turning downward.
Hence, bearish readers could set the resistance level at HK$7.30, while support levels would be located at HK$6.00 and HK$5.50.
Source: Gain Capital, TradingView
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