Xiaomi (HK: 1810) bearish sentiment will continue further based on the technical below:
- The sell off on Monday after the bullish rebound on last Friday wasn’t that strong. As such, this indicates a weakening of the bearish sell-off. However, the price will continue to slide down to the buying zone, with the zone confluence 78.6% retracement level of 8.35-14.00 and 161.8% extension of 11.00-14.00.
- The main reason for a continuation slides down before a rebound is that the 20 SMA have officially cross below the 50 SMA, sending a bear signal.
- The buying zone mention earlier at point one is a strong area of demand as first the strong bull rally at 9.20 is near the bullish cross over and the retracement likely bounces off at the deep retracement level of 78.6%.
*The technical call is valid only for 3 weeks.
CHART LEGENDS
Simple moving average
Blue dotted line = 50 SMA
Green dotted line = 20 SMA
