Air China (753.hk): Optimism Growing on Airline Stocks

As Moderna reported promising results of its Covid-19 vaccine, optimism is growing on old-economy stocks...

New Highs 4

After Pfizer reported breakthrough in its Covid-19 vaccine last week, Moderna said its mRNA-1273 showed a vaccine efficacy of 94.5% in a phase 3 study. Old-economy stocks, which were the most suffered during the pandemic, are likely to gain more traction amid growing optimism on a rebound in the global economic activity.

Airline stocks could be the most eye catching. Major Chinese airline Air China (753.hk) reported that passenger traffic rose 9.8% on month in October, up for a fifth straight month, and year-on-year decline narrowed to 35.3% from 79.2% in April.

On a daily chart, Air China (753.hk) may have shown a key turnaround after breaking above a long term bearish trend line. Currently, it is moving higher and away from both the 20-day and 50-day moving averages, while the relative strength index has jumped to the 70s. The level at $5.48 might be considered as the key support, while the 1st and 2nd resistance are expected to be located at $6.93 and $7.60 respectively.


Source: GAIN Capital, TradingView

More from Stocks

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.