Strategy:
Traders can look to buy between HK$11.00-HK$10.42 with a stop loss at HK$9.90. The 1st target price will be HK$11.90, 2nd target price at HK$12.48 and the 3rd target price at HK$13.70. 4th target price at HK$14.00.
Technical snapshot:
Xiaomi saw a strong V-shaped rebound at HK$10.13 support and the rise was relatively strong. Price action further is likely to see another strong upside:
- The stock saw a strong support above HK$10.00 psychological support. Furthermore, the downtrend channel is corrective.
- Prices has trend above the ichimoku’s 9-period conversion line and 26-period base line. The 26-period lagging span (black line) has recently trended above the candle. Two out of three bullish signal is seen, indicating that the bull may be in an early stage.
- Stochastic oscillator displayed a bullish divergence after crossovers in 6 and 28 June.
- MACD histogram is rising and is likely to return back above the zero line.