Sino Biopharmaceutical Strong downward momentum

Market chart
Sino Biopharmaceutical (1177), a pharmaceutical company, reported that 9-month underlying net income fell 17.9% on year to 2.29 billion yuan on revenue of 18.13 billion yuan, down 6.2%. After the release of the 3Q result, the stock slumped 10%. 

Besides, Citibank cut the company target prices from HK$12.8 to HK$11.60. 

From a technical point of view, the stock broke below a rising trend line from June 2019. The RSI broke below its oversold level at 30, suggesting a strong downward momentum. The declining 20-day moving average is also acting as key resistance now. Bearish readers could set the resistance level at HK$7.60, while resistance levels would be located at HK$6.15 and HK$6.25.

Source: GAIN Capital, TradingView
Related tags: Equities

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