Geely Automobile (175.HK) Broke Above the Declining Trend Line After the Announcement of Returning to A-Share

Geely Automobile (175), a vehicle manufacturer, said it has approved a preliminary proposal for the possible issue of RMB Shares and listing on the Science and Technology Innovation Board of the Shanghai Stock Exchange.

Uptrend 1

Geely Automobile (175), a vehicle manufacturer, said it has approved a preliminary proposal for the possible issue of RMB Shares and listing on the Science and Technology Innovation Board of the Shanghai Stock Exchange.

Citigroup raised the company's target prices from HK$16.7 to HK$20.0. The bank believed that the Company's A share listing will be accretive to its market capitalization. Currently, Chinese auto A-shares are trading at a 65% premium above Hong Kong's H-Shares.


On the daily chart, the stock jumped 5.8% after the announcement and broke above the declining trend line  drawn from January top. Besides, the 50-period moving average is turning up, indicating that the trend gradually changes to positive.

The bullish readers could set the support level at HK$11.36 (the previous low). A break above HK$13.32 (the high of May) would validate a double bottom pattern and consider a rise to HK$15.4 (the high of February).


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.