Chinese Concept Stocks with Promising Signals

Among the Chinese concept stocks listed in the US, NIO (NIO), JOYY (YY) and Sina (SINA) show promising technical signals...

Stocks (2)

NIO (NIO): Strong Bullish Momentum

Source: TradingView, Gain Capital

NIO (NIO), a Chinese electric vehicle manufacturer, has surpassed its historical after forming a rounding bottom pattern as shown on the daily chart. For the stock to maintain its strong bullish momentum, the 61.8% Fibonacci retracement level of the rally from March at $10.70 should act as the nearest support, with prices trending to test the 1st and 2nd resistance at $17.20 and $21.50 respectively. Alternatively, a break below $10.70 might trigger a pull-back to the next support at $9.40.

JOYY (YY): Long-term Rounded Bottom

Source: TradingView, Gain Capital

JOYY (YY), a Chinese video-based social network, has accelerated to the upside after breaking above a bearish channel as shown on the daily chart. In fact, it is building a rounding bottom pattern in the longer term. Despite a modest pull-back, the level at $69.00 might be considered as the nearest support, while a break above the nearest resistance at $99.35 would open a path to the next resistance at $115.00. Alternatively, losing $69.00 would suggest that the next support at $58.80 is exposed.

Sina (SINA): Promising Rebound Pattern

Source: TradingView, Gain Capital

Sina (SINA), a Chinese technology company, is gathering upside momentum after breaking above a bullish falling wedge pattern as shown on the daily chart. In fact, it has now broken above an ascending triangle and as long as the key support level at $34.50 holds, the 1st and 2nd resistances at $44.90 and $49.40 are likely to be tested. Alternatively, below $34.50, a downside correction to the next support at $30.00 may be due.

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