Air China (753.HK): Waiting for the Breakout Signal

Air China (753), a major Chinese airline, announced that passenger traffic declined 69.1% on year in May and the overall passenger load factor was 67.5%, down 12.7 percentage points.

Charts (5)

Air China (753), a major Chinese airline, announced that passenger traffic declined 69.1% on year in May and the overall passenger load factor was 67.5%, down 12.7 percentage points.

In fact, the U.S. government further eased the restriction of Chinese airlines on this Monday after China said it would allow more passenger flights by the U.S. airlines. The U.S. Department of Transportation said it would allow a total of four-trip flights a week by Chinese airlines, double the level it had set earlier this month.

From a technical point of view, as shown on the daily chart, the stock has formed a bottom at HK$4.50 with the bullish divergence signal from RSI. After that, the prices broke above the bearish trend line drawn from January top. However, the prices failed to penetrate the previous high at HK$5.60.

Currently, the prices are ranging between HK$4.50 and HK$5.60. A breakout signal is needed to confirm the direction of the stock.

On the upside, a break above HK$5.60 would consider a rise to HK$6.70 (100% measured move of current consolidation zone).

On the downside, losing the support level at HK$.4.50 would trigger a drop to HK$3.40 (100% measured move of current range.).


Sources: GAIN Capital, TradingView

More from Equities

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.