CNOOC (883.HK): Capped in Bearish Channel

On a daily chart, the stock keeps trading within a Bearish Channel drawn from June...

Energy 4

CNOOC Ltd (883.HK) manages China’s offshore oil and gas exploration and production activities, and its share-price performance should be highly co-related to international oil prices

Oil prices’ growth has decelerated after an up-surge in the April-June period. Investors have become concerned about the impact to oil demand caused by a worldwide resurgence in coronavirus cases.   

Simultaneously, CNOOC’s share price rebounded up to June before reversing course to the downside. 

On a daily chart, the stock keeps trading within a Bearish Channel drawn from June. 

Source: GAIN Capital, TradingView

Bearish investors should take the level of HK$8.90 (around the upper Bollinger band and the 50-day moving average) as the Key Resistance (Stop-loss) level

Unless this level is surpassed, the stock should pull back to HK$8.04 (around the low seen at the start of August).  Further weakness should pull the stock toward HK$7.36 on the downside.

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.