Haitong Securities (6837-hk): Cautiously Bullish
George Lam August 24, 2020 10:19 AM
Haitong Securities (6837-hk) is due to announce first half results on Friday, and it maintains a cautiously bullish bias...
Major Chinese brokerage firm Haitong Securities is due to announce first half results on Friday (August 28). Last month, the China Securities Association reported that 124 Chinese brokers recorded net profit in the first half, totaling 83.15 billion yuan.
From a technical point of view, Haitong Securities maintains a cautiously bullish bias after recent price swing as shown on the daily chart. It has surged to the upside after breaking above a bearish channel in early July, followed by a sharp pull-back as it was capped by a long-term declining trend line.
Nevertheless, the 78.6% Fibonacci retracement level of the rally acts as a support and it also stays above the ascending 50-day moving average. The level at $6.91 might be considered as the nearest support, while the 1st and 2nd resistances are likely to be located at $7.90 and $8.50 respectively. Alternatively, a break below $6.91 may suggest that the next support at $6.35 would be challenged.
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