China Energy Stocks In Focus: Sinopec (386) and China Gas (384)
George Lam December 31, 2020 11:50 AM
Sinopec's (386) and China Gas' (384) share price keep their upside momentum as indicated on the daily charts...
Sinopec (386): Rebound Intact
Source: GAIN Capital, TradingView
Chinese investment bank CICC pointed out that OPEC's decision to gradually increase crude production and positive coronavirus vaccine development have supported oil prices, and it said investors should keep an eye on undervalued Sinopec (386).
From a technical point of view, Sinopec's (386) recent rebound remains intact as shown on the daily chart. It has potentially formed a higher-low and support is provided by the 50-day moving average, which has turned upward. The level at HK$3.25 may be considered as the nearest support, while the 1st and 2nd resistance are expected to be located at HK$3.84 and HK$4.12 respectively.
China Gas (384): Extending its Rally
Source: GAIN Capital, TradingView
JPMorgan affirmed its "overweight" rating for China Gas (384), point out that the company's share price has outperformed its peers by around 4% since interim result released in late November. The investment bank expects the company's free cash flow, which turned positive in the first half of the year, to be sustainable.
From a technical point of view, China Gas (384) is gathering more upside momentum as shown on the daily chart. In fact, it has accelerated to the upside after breaking above a bullish falling wedge pattern, with the 20-day moving average rising further above the 50-day one. The level at HK$27.00 might be considered as the nearest support, while the 1st and 2nd resistance are expected to be located at HK$33.40 and HK$36.70 respectively.
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.