CNOOC (883.HK): Capped in Bearish Channel

On a daily chart, the stock keeps trading within a Bearish Channel drawn from June...

Energy 4

CNOOC Ltd (883.HK) manages China’s offshore oil and gas exploration and production activities, and its share-price performance should be highly co-related to international oil prices

Oil prices’ growth has decelerated after an up-surge in the April-June period. Investors have become concerned about the impact to oil demand caused by a worldwide resurgence in coronavirus cases.   

 
Simultaneously, CNOOC’s share price rebounded up to June before reversing course to the downside. 

On a daily chart, the stock keeps trading within a Bearish Channel drawn from June. 

Source: GAIN Capital, TradingView

Bearish investors should take the level of HK$8.90 (around the upper Bollinger band and the 50-day moving average) as the Key Resistance (Stop-loss) level

Unless this level is surpassed, the stock should pull back to HK$8.04 (around the low seen at the start of August).  Further weakness should pull the stock toward HK$7.36 on the downside.


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