Postal Savings Bank of China (1658.HK): Gapping Down
Ming Lam May 4, 2020 4:57 AM
Today (May 4) the Stock formed a Bearish Gap before shedding 8.4% to close at HK$4.26...
Postal Savings Bank of China (1658.HK) reported on April 28 that first-quarter net income grew 8.5% on year to 20.09 billion yuan.
Return on weighted average equity slipped to 15.77% from 17.00%
Non-performing Loan Ration remained stable at 0.86%.
Meanwhile, it seems investors have not yet been cheered up by the results.
PSBC marked a recent closing high at HK$5.39 on December 20 and an intraday high at HK$5.44 on January 3.
Source: GAIN Capital, TradingView
Since then it has posted a Bearish Pattern of Lower Highs and Lower Lows.
Today (May 4) the Stock formed a Bearish Gap before shedding 8.4% to close at HK$4.26. At the same time, Hong Kong's Hang Seng Index slumped 4.2%.
In fact, the Stock has shot below the Lower Bollinger Band calling for acceleration to the downside.
With a bearish bias, the Stock would seek Downside Support at HK$4.12 (the low of 2019). Further downside could make the Stock search for support at HK$3.85.
A Bullish Reversal could only be expected if the Stock returns to the overhead Key Resistance at HK$4.62 (at least filling back today's bearish gap).
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