SWI trade ideas
19.HKEX_ST ShortENTRY: 35.2
TP: 33.3-34.5
SL: 36.1
- ADX>20 today (30 Oct 2020)
- RSI<30 today (30 Oct 2020)
- MAs are aligned
- Good volume today on drop
Swire Pacific A ( 0019 - HK) - Updated EW count Swire Pacific A ( 0019 - HK) is in 3rd of 5th wave down having huge volume, which is driving it towards new low as shown in chart.
Bounce at 68.20 - Post corona virus melt down - Triple bottomOnce the virus is tamed expect China to inflate markets with financial stimulation. Going down before a huge bull bounce......
19 HK: Potential xABCD formation for -22% downsideSwire Pacific is the holding company for a HK property developer, Cathay Pacific the airline and Swire Offshore amongst other things. Since its last results announcement, HK property prices, the Chinese economy and oil prices have all cratered. Not exactly a rosy picture for the grand old Hong. Price action is potentially completing a Gartley pattern into a massive weekly downtrend line of a descending triangle which suggest lower demand for the stock on each rally. If this turns out to be a reversal (240M MACD has started to cross over), look for the stock to retest the bottom of the descending triangle at $70 which implies a -22% downside potential with well defined stop levels.
