ruebennase

XIAOMI.....A glory future for the stock?

HKEX:1810   XIAOMI-W
236 views
2
Hello Traders,
XIAOMI, the Chinese electrics company went public in August 2018 (longest available chart history)!
After a good start, the stock fell hard from a top @ HK$ 22.20 to a low @ HK$ 8.28, build a weeks-long bottom, and reversed trend after in a strong advance.
This formation looks to me as a „cup and handle“-pattern, with the handle to develop. If so to come, a strong advance for the stock in the coming weeks could be next.
From an Elliott-wave perspective, there is following picture to describe.
After the „all-time-low“ @ HK$ 8.28 the stock advance strong to a high @ HK$ 14.- and declined in „three-down“, what could be the first waves of a new impulse, count 1-2!
It followed an even stronger advance after completion to new highs @ HK$ 17.50 and reversed trend again for a short -term correction. This was the time, analysts have to draw a trend-channel at chart. The „break-out“ off this channel occurs at the week on August 23 with a strong gain and indicates, that a wave „3“ was underway. The correction after the high @ HK$ 26.96 is a wave „4“ of the same degree and would lead to new highs after it is done.
Today price has met the upper boundary of the channel and the MA 50 @ HK$ 19.39. May it needs one more low to come to close the open gap, left by the strong outbreak in August, but this is not required. To give a „harmonic“ view to chart, one lower low to come @ HK$ 18.64 would make waves (c)=(a)! A 0.382 Fibonacci is located @ HK$ 17.88 from of advance from HK$ 9.20-26.94!
Traders who believe in the bullish count maybe open a first position in XIAOMI. A break of the HK$ 14.- level would make the move an A-B-C-pattern and can be used as a Stop-loss-level (weekly close).

Have a great weekend....
ruebennase

Feel free to ask or comment!
Trading this analysis is at your own risk!

Comments

Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out