Hello Traders,
XIAOMI, the Chinese smartphone maker, is showing weakness since weeks.
The stock has fallen down to 12,74 HK$, and it seems there is no „tomorrow“ for XIAOMI!
But, is this the truth?
Let's check the stock.
Arguing that the rise from 8,28 to 35,90 HK$ was a complete impulsive move, the correction is a wave 2 of „intermediate degree“! That means, most of the gains have blown away, and the bears took control of the stock.
Sentiment is so negative against XIAOMI (and most of Chinese stocks), that it is hard to believe it could get better. But that is often the key to rising price for stocks.
The advance from the low @ 8,28 – 35,90 HK$ took 495 days; the decline is now at 425 days, with the low @ 12,74 HK$! Note the open gap-down left from March 3-4: This could be an „exhausting-gap“, that only appears at the end of a trend. So, if this gap should be closed, and the low @ 12,74 is valid, the trend could have changed to the upside!
But this call is a „is a tender flower“! Means, watch the low with Argus-eyes.
A break of this low should have tremendous impact on the stock!
But let's get positive! If this gap should be closed, the next short-term target is @15 HK$ and above up to 16,50-17,58 HK$! But this could be a hard way to go.
So, I will try to update the chart in the coming 1-2 weeks and hopefully the stock is performing well positive!
Have a great Sunday.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
XIAOMI, the Chinese smartphone maker, is showing weakness since weeks.
The stock has fallen down to 12,74 HK$, and it seems there is no „tomorrow“ for XIAOMI!
But, is this the truth?
Let's check the stock.
Arguing that the rise from 8,28 to 35,90 HK$ was a complete impulsive move, the correction is a wave 2 of „intermediate degree“! That means, most of the gains have blown away, and the bears took control of the stock.
Sentiment is so negative against XIAOMI (and most of Chinese stocks), that it is hard to believe it could get better. But that is often the key to rising price for stocks.
The advance from the low @ 8,28 – 35,90 HK$ took 495 days; the decline is now at 425 days, with the low @ 12,74 HK$! Note the open gap-down left from March 3-4: This could be an „exhausting-gap“, that only appears at the end of a trend. So, if this gap should be closed, and the low @ 12,74 is valid, the trend could have changed to the upside!
But this call is a „is a tender flower“! Means, watch the low with Argus-eyes.
A break of this low should have tremendous impact on the stock!
But let's get positive! If this gap should be closed, the next short-term target is @15 HK$ and above up to 16,50-17,58 HK$! But this could be a hard way to go.
So, I will try to update the chart in the coming 1-2 weeks and hopefully the stock is performing well positive!
Have a great Sunday.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!