Technical Pulse: Xiaomi Corp April 9, 2020 567

Xiaomi (HK: 1810) sell-off will continue further based on the technical below:

  1. On 17th March 2020, the report indicates that there is a further sell-off till the buying zone at 9.16-9.22 region and price did rebound at the zone. However, the bearish flag formation indicates that the buying pressure is more of corrective action as the upward momentum is slowing down.
  2. Zooming in to the price action within the flag, the stock is engaging in a net sell-off as it had already formed a double top formation.
  3. Candlestick price action suggests that the stock has two failed bullish pin bar, a sign of slow momentum and price broke out of the bearish flag on Wednesday close. This candlestick action can be interpreted as an evening star formation.
  4. Stochastic oscillator shows a bearish crossover.

 

*The technical call is valid only for 3 weeks.

 

 

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