US Listed Chinese Concept Stocks: The Two Struggling

From a technical analysis point of view, Weibo (WB) and Momo (MOMO) are the two struggling Chinese concept stocks...

Downtrend 1

Weibo (WB): Downtrend Intact

Source: TradingView, Gain Capital

Weibo (WB), a Chinese microblogging website, remains on the downside as shown on the daily chart. Despite a recent rally, it is capped by a bearish trend line drawn from April last year. The level at $40.40 might be considered as the nearest resistance, with prices likely to retreat to the 1st and 2nd support at $32.50 and $28.90 respectively. Alternatively, a break above $40.40 would suggest an upturn and trigger an advance to the next resistance at $45.80.  

Momo (MOMO): Lack of Strong Bullish Reversal Signals

Source: TradingView, Gain Capital

Momo (MOMO), a mobile-based social networking platform, has yet to show a strong enough bullish reversal pattern. Despite the fact that there is a daily RSI bullish divergence, it remains capped by a declining trend line drawn from April. Unless the key resistance at $22.00 is surpassed, prices risk breaking the nearest support at $16.60 and drop further to test the next support at $15.30. Alternatively, a break above $22.00 might trigger a further rebound to the next resistance at $23.60.

More from Stocks

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.