CNOOC (883.HK): Capped in Bearish Channel

Oil rig in the sea
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.


Related tags: Equities

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