Support 1: 12.70                     Resistance 1: 10.40

Geely Automobile (HK: 175) strong bullish break out of the wedge formation has been met with resistance as the price reject the previous high of 12.70. Based on the technicals, the stock is entering into a bearish downward trend.

1. Wednesday’s rise was hit with a strong sell off at 12.70.
2. Dark clouds cover candlestick formed after market close, signifying a strong bearish trend ahead.
3. Potential double top formation after a strong sell off at 12.70.
4. Stochastic Oscillator showing signs of overbought when the K and D line crosses at the overbought zone.

CHART LEGENDS

Red dotted line= 200 Moving Average