Citigroup raised the company's target prices from HK$16.7 to HK$20.0. The bank believed that the Company's A share listing will be accretive to its market capitalization. Currently, Chinese auto A-shares are trading at a 65% premium above Hong Kong's H-Shares.
On the daily chart, the stock jumped 5.8% after the announcement and broke above the declining trend line drawn from January top. Besides, the 50-period moving average is turning up, indicating that the trend gradually changes to positive.
The bullish readers could set the support level at HK$11.36 (the previous low). A break above HK$13.32 (the high of May) would validate a double bottom pattern and consider a rise to HK$15.4 (the high of February).
Source: GAIN Capital, TradingView