CK Hutchison Holdings primary downtrend intact, further potential downside

CK Hutchison Holdings (0001 HKG)



click to enlarge charts

Key Levels (1 to 3 weeks)

Pivot (key resistance): 73.00

Supports: 64.30 & 59.80

Next resistance: 79.10

Directional Bias (1 to 3 weeks)

Bearish bias below 73.00 key medium-term pivotal resistance for another round of potential impulsive downleg to retest 15 Aug 2019 low of 64.30 before targeting the next significant medium-term support at 59.80.

However, a clearance with a daily close above 73.00 invalidates the bearish scenario for a continuation of the corrective rebound towards the major resistance at 79.10 (former swing low areas of Oct 2011/Jun 2016 & upper boundary of the primary descending channel from Jan 2018 high).

Key elements

  • CK Hutchison Holdings, ranked number 11th in the Hang Seng Index based on market capitalised, also chaired by Hong Kong’s richest man, Li Ka-Shing has been evolving within a primary downtrend in place since 26 Jan 2018 high of 107.00.
  • The daily RSI oscillator remains bearish below a corresponding resistance at the 50 level after a test and retreat from it. These observations suggest that medium-term downside momentum remains intact.
  • The key medium-term resistance stands at 73.00 which is defined by the upper boundary of a medium-term descending channel from 09 Apr 2019 high and former swing low areas of 04 Jan/30 May 2019).
  • Today, 27 Aug price action is considered as negative as it has staged a push up to fill up the “gapped down” formed on Mon, 26 Aug and ended the session with a bearish daily candlestick.  
  • The significant medium-term support rests at 59.80 which is defined by the intersection point of the primary and medium-term descending channels and the former major swing low area of Oct 2008.
  • Relative strength analysis of CK Hutchison Holdings against the market (Hang Seng Index) is still not showing any clear signs of reversal from its underperformance.  

Charts are from eSignal 


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.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT