Slightly risky play hence small position should suffice.
HSI + Futures are seem to have found bottom here, good position for breakout play, nice risk to reward ratio too.
Xinyi Glass (868.HK) is under a downward trend. The stock price cannot up cross the downward trend line. Also, there is a decrease in demand on construction and auto glass demand. The downside direction is with Hang Seng Index.
HKEX:868 Xinyi Glass has formed a flag pattern in the past two weeks. This sits within an uptrending regression channel. It should rebound off $19.26, and then, if it breaks out of the short-term down channel (marked by the two red lines), and hits resistance level 20.64, I expect it to rocket up to~$23.50. Timeframe ~21 trading days.
HKEX:868 has a strong candle stick pattern appear on the support. 9.8. Now see if it will return to the previous support around 10.5
Buy in at 10.5
Cut loss at 9.76
Target at 12.4
