Strategy:
Traders can look to sell between HK$78.25 – HK$80.10 with a stop loss at HK$83.60. The 1st target price will be HK$71.50, 2nd target price at HK$66.49 and the 3rd target price at HK$61.62.
Technical snapshot:
AIA Group bearish pressure is back on after a weaker than expected rally on 26 June to 4 July. The rally also fails to break new high and have formed a lower high and based on the price action below, the bear trend is not likely to be over and we are adding to the short position based on our trendspotter dated 15 May:
- The descending triangle formation is likely a bearish continuation pattern.
- Strong bearish candle was seen closing below the 9-period conversion and 26- period base line. Shadow was seen rejecting the cloud resistance.
- Volume increases on selling, confirming the sentiment.
- MACD and its histogram has dipped below the zero line.
- Stochastic oscillator continue to make lows, indicating bearish momentum remains.
- DM- was seen rebounding off the 25-level, indicating the return of the bearish strength