Brilliance China (1114-hk): Consolidation before Next Rally
George Lam July 17, 2020 1:52 PM
Brilliance China's (1114-hk), a Chinese vehicle manufacturer, share price has nearly reached the upper range of our forecast made in mid-June, marking a high at $9.13 on July 7...
Brilliance China's (1114-hk), a Chinese vehicle manufacturer, share price has nearly reached the upper range of our forecast made in mid-June, marking a high at $9.13 on July 7.
Last week, the China Association of Automobile Manufacturers reported that China's vehicle sales grew 11.6% on year in June and production was up 22.5%, possibly suggesting that the recovery in consumer demand is on track.
From a technical point of view, Brilliance China (1114-hk) maintains a bullish bias despite a pull-back, as shown on the daily chart. Its share price is probably heading back to fill the gap made on July 6, while a rising trend line drawn from April should act as a support. Bullish investors may consider $7.00 as the nearest support, with the 1st and 2nd resistance at $9.13 and $9.80 respectively. Alternatively, a break below $7.00 would suggest a loss of momentum and might trigger a deeper correction to the next support at $6.50.
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.