Brilliance China (1114-hk): Gathering Upside Momentum
George Lam June 15, 2020 11:46 AM
China's retail passenger vehicle grew 1.9% on year to 1.639 million units in May, the first increase since June last year...
China Passenger Car Association reported that retail passenger vehicle sales in China grew 1.9% on year to 1.639 million units in May, the first increase since June last year. The industry group said the ongoing recovery is expected in June, supported by reopening of vehicle exhibitions.
In fact, Macquarie said Chinese automobile group Brilliance China's (1114-hk) joint venture BMW Brilliance kept outperforming the Chinese auto market in May, with double-digit growth in retail sales and wholesale shipments, benefiting from resilient demand from higher-income groups.
From a technical point of view, Brilliance China (1114-hk) is gathering upside momentum as shown on the daily chart. It has broken above a head and shoulder bottom pattern, with both 20-day and 50-day moving averages heading upward. The level at $6.60 might be considered as the nearest support, and a break above the nearest resistance would open a path to the next resistance at $9.35. Alternatively, losing $6.60 may trigger a pull-back to the next support at $6.00.
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.