CK Hutchison (1.HK): Trading Within the Symmetric Triangle

CK Hutchison (1), a multi-industry company, reported that 1H net income was down 29% on year to 13 billion Hong Kong dollars on revenue of 189.94 billion Hong Kong dollars, down 12%. The interim dividend per share declined 29% on year to 61.4 Hong Kong cents.

Charts (4)

CK Hutchison (1), a multi-industry company, reported that 1H net income was down 29% on year to 13 billion Hong Kong dollars on revenue of 189.94 billion Hong Kong dollars, down 12%. The interim dividend per share declined 29% on year to 61.4 Hong Kong cents.

The Chairman of the Company, Victor Li, said the reduction of dividend could ensure the safety of the group and prepare for any unexpected scenarios and identify potential acquisitions.

After the announcement of interim results, Nomura kept the rating at buy and lowered the forecast price from HK$68.6 to HK$64.7.  The securities firm said the company's telecommunication business reorganization and weaker USD could be a tailwind in 2H20.

The stock is trading within the symmetric triangle, while the relative strength index is ranging within 49 and 59. Both technical configurations suggest the lack of momentum for the prices.

Investors should stay neutral and wait for the breakout signal. A break above the previous high at HK$52.0 would bring a rise to the resistance level at HK$56.0. Alternatively, a break below HK$49.0 would trigger a drop to March low at HK$45.0.



Source: GAIN Capital, TradingView

More from Equities

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.