Sands China (1928.HK) Needs to Break Above Corrective Channel for a Further Upside

Sands China (1928), an integrated resort operator, said it swung to a net loss of 180 million dollars in April......

Charts (4)

Sands China (1928), an integrated resort operator, said it swung to a net loss of 180 million dollars in April from a net profit of 148 million dollars in the prior-year period, and adjusted property EBITDA loss totaled 105 million dollars, compared with an adjusted property EBITDA of 239 million dollars last year.

Recently, Investment Bank Morgan Stanley projected that there would be a partial removal of restrictions by mid-Jun, by then there will be resilient demand from Chinese gamblers.

From a technical point of view, the stock remains trading within the corrective channel after breaking the declining trend line drawn From January top. The 50-period moving average is flattening, while the RSI stays within the range between 40 and 56. Both indicators would indicate the lack of momentum for the prices.

Therefore, the stock is needed to break above the recent corrective channel to enhance the bullish outlook. Otherwise, the stock would continue its consolidation phase.

The resistance levels would be located at HK$33.50 (the April high and 50% retracement between February top and March low) and HK$35.45 (61.8% retracement between February top and March low). The support levels would be set at HK$28.25 (the bottom of May) and HK$25.20 (the low of March).

Source: GAIN Capital, TradingView

More from Equities

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 or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account