Xiaomi (HK: 1810) sell-off will continue further based on the technical below:
- 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.
- 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.
- 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.
- Stochastic oscillator shows a bearish crossover.
*The technical call is valid only for 3 weeks.