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.