JICPT| Chinese tech stocks rally with trouble zones ahead!Hello everyone. After days of bleeding, finally Chinese stocks started a rally today after being hit by tightened regulation in China.
To map out the possible future move, I put Hang Seng index and the big familiar tech names, e.g. Tencent, BABA and Meituan on the same chart. The analysis is carried out on the daily timeframe.
Hang Seng Index: Lower low created with a bit uncertainty because price closed above previous low. That's good for buyers. However, the overall trend is definitely down. The broad market index needs to break the downtrend line first to establish bullish trend.
Tencent: Please check my linked related ideas below. I clearly pointed out the key level of HKD 421 and HKD 394. Now, HKD 421 has been respected well. The nearest trouble zone is HKD 490 .
BABA: the duo listing stock has rebounded from fresh low. The wedge pattern suggested selling pressure around HKD 174-177.
Meituan: The stock surged by over 13% today, however, the rider protection will weigh on its profit. I've read an article, claiming that the employment costs will burn out the cash. The business model will not be sustainable. It's a headache for the government as well. You wanna keep jobs or kill the company? The trouble zone is marked in yellow colour around 234-242.
In one word, we still need more time to see how price react to the trouble zones ahead. That's why my strategy is neutral.
Give me a like you're with me.
