US Listed Chinese Concept Stocks: The Two Struggling

From a technical analysis point of view, Weibo (WB) and Momo (MOMO) are the two struggling Chinese concept stocks...

Downtrend 1

Weibo (WB): Downtrend Intact

Source: TradingView, Gain Capital

Weibo (WB), a Chinese microblogging website, remains on the downside as shown on the daily chart. Despite a recent rally, it is capped by a bearish trend line drawn from April last year. The level at $40.40 might be considered as the nearest resistance, with prices likely to retreat to the 1st and 2nd support at $32.50 and $28.90 respectively. Alternatively, a break above $40.40 would suggest an upturn and trigger an advance to the next resistance at $45.80.  

Momo (MOMO): Lack of Strong Bullish Reversal Signals

Source: TradingView, Gain Capital

Momo (MOMO), a mobile-based social networking platform, has yet to show a strong enough bullish reversal pattern. Despite the fact that there is a daily RSI bullish divergence, it remains capped by a declining trend line drawn from April. Unless the key resistance at $22.00 is surpassed, prices risk breaking the nearest support at $16.60 and drop further to test the next support at $15.30. Alternatively, a break above $22.00 might trigger a further rebound to the next resistance at $23.60.

More from Stocks


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 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.