Technical Pulse: Xiaomi Corp October 30, 2020 963

Xiaomi Corp (HKEX: 1810) strong bullish intermediate impulse wave has yet to be completed and current wave analysis suggest that Xiaomi is currently on the corrective 4th wave and technical indicate a potential further upside of the stock:

  1. Wave analysis indicate that Xiaomi’s wave (3) is an extended wave and therefore, the corrective action of wave (4) will likely be a corrective complex flat.
  2. The falling wedge of wave sub-wave (w)(x)(y) is actually the fractal version of the larger falling wedge found on wave A. Therefore, there is a chance that the next upside will follow suit.
  3. Bullish outside bar attempting to break the falling wedge formation and the outside bar has successfully close above the 50-day moving average, indicating a strong desire for further upside.
  4. Target price level confluence closely with the Fibonacci extension level of wave A and expansion level of sub 1st leg of wave B. Hence, there is a possibility that the flat is either expanding/running or regular flat.

 

*Timeline of the trade is 3 weeks from the date issued.

 

CHART LEGENDS

Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average

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