China Shenhua (1088-hk): No Signs of Stabilizing
George Lam June 18, 2020 12:03 PM
China Shenhua reported that commercial coal production fell 0.4% on year to 24.7 million tons in May and sales were down 10.1% to 37.2 million tons...
China Shenhua (1088-hk), a top Chinese coal miner, reported that commercial coal production fell 0.4% on year to 24.7 million tons in May and sales were down 10.1% to 37.2 million tons. For the first five months of the year, production grew 0.9% to 121 million tons and sales rose 1.2% to 167 million tons.
In April, the company announced a 22% decline in 1Q net income, following a 5.5% drop last year. Its share price has been trending lower since the beginning of 2018, as its earnings results have repeatedly disappointed investors.
From a technical point of view, China Shenhua shows no signs of stabilizing as shown on the daily chart. It keeps trading within a long term bearish channel drawn from the January 2018. In fact, it has recently formed a double-top bottom pattern and is threatening the neckline. Bearish investors might consider $13.48 as the nearest resistance, while a break below the nearest support at $11.96 would open a path to the next support at $10.72. Alternatively, above $13.48, prices are likely to rebound to challenge the next resistance at $14.18.
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.