Air China (753.hk): Optimism Growing on Airline Stocks

As Moderna reported promising results of its Covid-19 vaccine, optimism is growing on old-economy stocks...

New Highs 4

After Pfizer reported breakthrough in its Covid-19 vaccine last week, Moderna said its mRNA-1273 showed a vaccine efficacy of 94.5% in a phase 3 study. Old-economy stocks, which were the most suffered during the pandemic, are likely to gain more traction amid growing optimism on a rebound in the global economic activity.

Airline stocks could be the most eye catching. Major Chinese airline Air China (753.hk) reported that passenger traffic rose 9.8% on month in October, up for a fifth straight month, and year-on-year decline narrowed to 35.3% from 79.2% in April.

On a daily chart, Air China (753.hk) may have shown a key turnaround after breaking above a long term bearish trend line. Currently, it is moving higher and away from both the 20-day and 50-day moving averages, while the relative strength index has jumped to the 70s. The level at $5.48 might be considered as the key support, while the 1st and 2nd resistance are expected to be located at $6.93 and $7.60 respectively.


Source: GAIN Capital, TradingView

More from Stocks

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.