Hong Kong stocks Market Overview:-
Hong Kong stocks opened with positive biased and regained the 23,000 level on the back of positive PMI data announced by HSBC. However, gains narrowed in late session, Hang Seng index closed at 22,953, added 117 points. Market turnover was HK$62.5bnHang Seng Index closed 5 week high on Thursday. Technically, index is looking bullish till it sustain above 22600. RSI now trading in positive territory and closed above its 14 DMA. MACD bullish gap expanding, which showing that momentum is now stable. Index is now having major resistance at the level of 23200 profit booking in market can be seen and index can show a range bound movement in upcoming session. Hang Seng index first support would be 22,600, while next support would be seen at 50DMA (22,327).
Stock Pick for the day: CM Bank
Recommendation Buy
Target : 15& 16
Recommended Price : 14.06
Stop Loss 13.40
STOCK SUMMARY:-
Major trend of CM Bank is bullish on charts and it has been trading in positive territory from past few trading session. It has shown good accumulation with positive biased. It has been facing resistance of 200 DMA on intra day, if it manages give breakout above its immediate resistance mark of 14.06 and sustain above 200 DMA then further northward movement can be seen in upcoming session. One can initiate long position in the stock above 14 and can expect the targets of 15& 16 in upcoming session, while support of 13.40 can act at stop loss.
CHART FORMATION:-
Stock is forming higher top and higher bottom on daily chart with the support of 50 DMA and 200 DMA and it has given upside breakout from its falling wedge on intraday chart and sustaining above its upper resistance line.
INDICATORS:-
MACD Line is sustaining above its single line. RSI is trading in positive territory and taking support of its 14 DMA.
On ADX its positive DI Placed above its negative DI where as ADX is trading above 25 mark.
RSI is trading in positive territory and sustaining above its 14 DMA.
