Bias more on upside. Supported by 38.2% Fibo + Ascending uptrend line since 2009 GFC.
Worth to take a risk.
SL: Below $45
Trade safe
2318
Ping An Insurance - A fintech Playwww.businesstimes.com.sg
This is what I would be watching closely as well.
If you understand how insurance works, it is a fantastic business model of risk and rewards.
By collecting regular premium from life insurance products and reinvesting to make greater profits, the risks of payout is smaller over a long period of time is smaller compared to what is collected.
Despite the good profits declared, the share price dropped , creating a good buying opportunity for us. See chart for explanation.
2318.HK PingAn (Rebounce Suspecting for short-run)1. Uptrend line (Long-run): Lining up bottoms of 2016 and 2020.
2. Fibonacci retracement: 61.8% of latest uptrend (Mar 2020 - Jan 2021)
3. Former tops: In monthly chart, ~79.50 was the top of consolidation area in 2H2020.
Trades:
A) BUY - hold and wait for actual buy signals (above 9EMA, MACD cross, ROCxSROC)
B) SELL - short it when price touch 9EMA
2318 (HKX) - Still BullishGreetings
Humbled, we would like to thanks for your support who has already liked, commented and followed us. Your support, strengthens us, to help in analyzing the market. If you have any questions, do not be hesitant to send us message (inbox). Our Service : Signal recomendation, Trading Course, Portofolio Consultation for multi asset such as Stock, FX, Derivative, Crypto, etc
Strategy
- Please care for Money Management
- Have a good psychology
- Do not be hurry to open position
- Evaluate and upgrade your trading plan
Analysis
2318 (HKX) - Still Bullish
PING AN is getting another boost hereAscending Triangle breakout one after another
Bullish on PING AN insurance
2318 HK: Top of the range for -17% downside2318 is a leveraged financial play on the Chinese economy which is not doing very well at the moment. The stock has been consolidation in a range between $68 to $80 from July 2018 to today. Stock is back at the top of the range which suggest there is an asymmetrical risk reward trade set-up.
Technically speaking, it is worthwhile to remember 2318 completed a 3-Drive pattern from the 2009 trough in Jan 2018 while fundamentally speaking, it is a victim of the Chinese deleveraging, slowdown in the private sector and a bombed out stock market. Consolidation channels are generally continuation patterns which suggest 2 potential downside scenario:-
#1 a retest of the channel lower boundary for -17% potential downside target
#2 a breakdown from the channel which would imply a CD leg down to $45 to $48, -40%, which coincides with the 78.6% retracement level of the Feb'16 to Jan'18 up-move.
So far, I am commenting mainly from the technical analysis angle with a smattering of fundamentals/equity story. Do let me know in the comments if you folks prefer more TA, fundamentals or a more nuanced view. Knowledge without timing = 0.
