Technical Pulse: Xiaomi Corp October 30, 2020 567

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

Join our telegram channel on technical analysis for trends, entry and exit prices over Stocks, ETFs, and Indices!

Featuring regular TA posts and requests to analyse specific stocks
Click to join!
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

About the author

Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 11 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory. He believes that history plays an important role in how the market is reflected in the future.

Get access to all the latest market news, reports, technical analysis
by signing up for a free account today!