Is it a good chance to buy Xiaomi (1810.HK) in dip?
Medion Jim December 2, 2020 9:31 PM
Xiaomi (1810), a giant Chinese electronics company, announced shares placement of approximately 4.1% of the existing issued share capital at 23.70 Hong Kong dollars per share...
Xiaomi (1810), a giant Chinese electronics company, announced shares placement of approximately 4.1% of the existing issued share capital at 23.70 Hong Kong dollars per share, representing about 9.4% to its closing price on Monday, and issue of convertible bonds. The company said it intends to use the estimated net proceeds of 3.1 billion dollars for strengthening working capital for business expansion, investments to increase market share in key markets, strategic ecosystem investments and other general corporate purposes. The stock fell 7% after the announcement of share placement.
In November, the company announced that 3Q adjusted net profit rose 18.9% on year to 4.13 billion yuan on revenue of 72.16 billion yuan, up 34.5%. The 3Q result of the company shows the strong growth rate of the company.
From a technical point of view, although the stock posted a pullback from HK$28.4, it is still supported by a rising trend line and the 50-day moving average. The stock posted a potential candlestick pattern yesterday, then the stock broke above the high of yesterday. It would provide more evidence to the reversal signal.
Bullish readers could set the support level at HK$22.3, while resistance levels would be located at HK#28.4 and HK$31.00.
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.