Market News & Analysis
AIA Group: Key Resistance level at HK$71.70
Medion Jim May 15, 2020 12:31 PM
AIA Group (1299), an insurance giant, reported that 1Q new business value dropped 28% on year (-27% at constant exchange rates) to 841 million dollars and annualised new premiums declined 19% (-18% at constant exchange rates) to 1.48 billion dollars. The Company said the decline of new business value was caused by the indirect impacts of the COVID-19 pandemic.From a technical point of view, the stock is capped by a declining trend line drawn from April 20 on a daily chart. The prices have formed a series of lower tops, suggesting that the rebound from March is possibly ended. In addition, both 20-day and 50-day moving averages are still declining. The RSI is capped by a falling trend line drawn from November 2019. Those technical indicators would suggest the negative outlook.
Therefore, the bearish readers could set the nearest resistance level at HK$71.70 (the previous reaction high). As long as this level is not surpassed, the stock could consider to fill the gap at HK$64.40 and return to the March low at HK$60.00.
Source: GAIN Capital, TradingView
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