Air China (753.hk): Optimism Growing on Airline Stocks
George Lam November 17, 2020 10:38 AM
As Moderna reported promising results of its Covid-19 vaccine, optimism is growing on old-economy stocks...
After Pfizer reported breakthrough in its Covid-19 vaccine last week, Moderna said its mRNA-1273 showed a vaccine efficacy of 94.5% in a phase 3 study. Old-economy stocks, which were the most suffered during the pandemic, are likely to gain more traction amid growing optimism on a rebound in the global economic activity.
Airline stocks could be the most eye catching. Major Chinese airline Air China (753.hk) reported that passenger traffic rose 9.8% on month in October, up for a fifth straight month, and year-on-year decline narrowed to 35.3% from 79.2% in April.
On a daily chart, Air China (753.hk) may have shown a key turnaround after breaking above a long term bearish trend line. Currently, it is moving higher and away from both the 20-day and 50-day moving averages, while the relative strength index has jumped to the 70s. The level at $5.48 might be considered as the key support, while the 1st and 2nd resistance are expected to be located at $6.93 and $7.60 respectively.
Source: GAIN Capital, TradingView
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