Chinese Tech Stocks WuXi Biologics Kingdee
WuXi Biologics (2269-hk) & Kingdee (268-hk), the two Chinese tech stocks, have shown promising bullish signals...
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WuXi Biologics (2269.hk): Consolidate before Next Rally
WuXi Biologics (2269.hk), a biopharmaceutical group, released a positive profit alert on July 29, stating that 1H net income is expected to increase by more than 58% on year. The company said "more client projects were added into the Group's pipeline expediting the development and manufacturing of potential treatments related to COVID-19 in support of its global clients".
As shown on the daily chart, WuXi Biologics' share price has finished a measured move after reaching a high at $193.0 on August 6, suggesting a potential consolidation before the next rally. Bullish investors might consider $152.2 as the nearest support, which is the 61.8% Fibonacci retracement of the rally started from March. The 1st and 2nd resistances are expected to be located at $193.0 and $222.0 respectively. Alternatively, a break below $152.2 may open a path to the next support at $139.7.
Source: TradingView, Gain Capital
Kingdee (268.hk): Strong Bullish Momentum
Kingdee (268.hk), a software company, issued a profit warning in early July, pointing out that it expects to record a 1H net loss of 200 - 300 million yuan compared with a net profit of 110 million yuan last year. However, its share price showed resilience as investor continue to chase technology stocks.
Kingdee's rally, after breaking above a 2-year consolidation range, remains solid. For the stock to keep its strong bullish momentum, the level at $19.70 is expected to act as the nearest support. The 1st and 2nd resistances are expected to be located at $25.30 and $27.00. Alternatively, losing $19.70 might suggest a deeper price correction to $17.00.
Source: TradingView, Gain Capital
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