Guangzhou Automobile Group (2238.HK) Broke Below the Rising Channel
Medion Jim September 10, 2020 2:30 PM
Guangzhou Automobile Group (2238), a vehicle manufacturer, announced that vehicle production grew 7.8% on year to 166,315 units in August and sales were up 11.6% to 180,609 units.
Guangzhou Automobile Group (2238), a vehicle manufacturer, announced that vehicle production grew 7.8% on year to 166,315 units in August and sales were up 11.6% to 180,609 units. After the announcement of the sales data, the stock rebounded 3% yesterday. However, the stock prices failed to follow yesterday's rise.
Recently, the company reported that 1H net income slumped 53% to 2.32 billion yuan on revenue of 25.4 billion yuan, dropping 9.6%.
From a technical point of view, the stock broke below the rising channel drawn from July. The 20-day moving average is also turning downward.
Hence, bearish readers could set the resistance level at HK$7.30, while support levels would be located at HK$6.00 and HK$5.50.
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.