Technical Pulse: Henderson Land Development Co Ltd February 19, 2020 327

Henderson Land (HK: 12) bullish move from 34.70 seems to be a correction rather than a  bullish impulse based on the technical below:

  1. The rising wedge formation is a sign of a slowing bullish momentum due to its converging nature.
  2. Shooting star formation on Monday closes and rejects below 61.8% and the supply zone signify a strong bearish correction ahead.
  3. The shooting star had a strong rejection of the 50 SMA. Reflects bearish downside risk on the mid-term.
  4. Strong bearish candle confirmation on Tuesday evolve into an evening star formation at the supply area gives conviction of bearish downside risk.
  5. The 50 SMA crosses below the 200 SMA on August last year and prices have been trending below the 200 and 50 SMA, thus signifying a strong bearish continuation.
  6. Bearish overbought cross over of the Stochastic Oscillator indicates a bearish sell-off.

*The technical call is valid only for 3 weeks.

 

CHART LEGENDS

Simple Moving Averages

Red dotted line = 200 SMA

Blue dotted line = 50 SMA

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