China Eastern Airlines (670.HK) Rallied Ahead of China National Day Holiday

China Eastern Airlines (670), an airline group, rallied above 50% from March low. Currently, the stock is holding on the upside despite the worsen monthly result.

Uptrend 4

China Eastern Airlines (670), an airline group, rallied above 50% from March low. Currently, the stock is holding on the upside despite the worsen monthly result.

The company posted passenger traffic slid 44.0% on year in August, and the passenger load factor decreased by 12.06 percentage points to 73.32%. 

Citigroup said the valuation of China airlines is attractive and that any progress on a coronavirus vaccine would further boost investor sentiment in the short term.

Besides, the long National Day holiday is coming in October, which could boost the airlines income in the short term.

From a technical point of view, the stock climbed along the rising 20-day moving average after breaking above the ascending triangle pattern.

The RSI is above its overbought level at 70, but has not displayed any reversal signal.

Bullish readers could set the nearest support level at HK$3.37, while resistance levels would be located at HK$4.00 and HK$4.45.


Source: GAIN Capital TradingView

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.