Xiaomi's bullish is weak depite rebounding from the demand zone.
Xiaomi sell-off will continue further based on the technical below:
1. On 17th March 2020, the report indicate that there is a further sell-off till the buying zone at 9.16-9.22 region and price did rebound at the zone. However, the bearish flag formation indicate that the buying pressure is more of a corrective action as the momentum is slowing down.
2. Zooming in to the price action within the flag, the stock is clearly engaging in a net sell-off as it had already formed a double top formation.
3. Candlestick price action suggest that the stock has two failed bullish pin bar, a sign of slow momentum and price broke out of the bearish flag on Wednesday close. This candlestick action can be interpreted as an evening star formation.
4. Stochastic oscillator shows a bearish crossover.
1. On 17th March 2020, the report indicate that there is a further sell-off till the buying zone at 9.16-9.22 region and price did rebound at the zone. However, the bearish flag formation indicate that the buying pressure is more of a corrective action as the momentum is slowing down.
2. Zooming in to the price action within the flag, the stock is clearly engaging in a net sell-off as it had already formed a double top formation.
3. Candlestick price action suggest that the stock has two failed bullish pin bar, a sign of slow momentum and price broke out of the bearish flag on Wednesday close. This candlestick action can be interpreted as an evening star formation.
4. Stochastic oscillator shows a bearish crossover.