3CP trade ideas
Xiaomi Change in fundamental with trendHKEX:1810
Long term trend - Buy
Period - 1 year
With the new launch of innovative products at a budget, this darling will shine during the difficult time where people tend to downgrade for a better price (low) with a good quality.
The company financially is starting to do well with increase in EPS and reduction in debt which is crucial during this time.
From technical perspective, it has formed a round bottom and at current price of 22.50 is the first target of those who bought at the bottom.
If market condition is strong , we expect the potential price to hit $34-35 range in the mid - long term. With potential stop loss at $14.
XIAOMI.....A glory future for the stock?Hello Traders,
XIAOMI, the Chinese electrics company went public in August 2018 (longest available chart history)!
After a good start, the stock fell hard from a top @ HK$ 22.20 to a low @ HK$ 8.28, build a weeks-long bottom, and reversed trend after in a strong advance.
This formation looks to me as a „cup and handle“-pattern, with the handle to develop. If so to come, a strong advance for the stock in the coming weeks could be next.
From an Elliott-wave perspective, there is following picture to describe.
After the „all-time-low“ @ HK$ 8.28 the stock advance strong to a high @ HK$ 14.- and declined in „three-down“, what could be the first waves of a new impulse, count 1-2!
It followed an even stronger advance after completion to new highs @ HK$ 17.50 and reversed trend again for a short -term correction. This was the time, analysts have to draw a trend-channel at chart. The „break-out“ off this channel occurs at the week on August 23 with a strong gain and indicates, that a wave „3“ was underway. The correction after the high @ HK$ 26.96 is a wave „4“ of the same degree and would lead to new highs after it is done.
Today price has met the upper boundary of the channel and the MA 50 @ HK$ 19.39. May it needs one more low to come to close the open gap, left by the strong outbreak in August, but this is not required. To give a „harmonic“ view to chart, one lower low to come @ HK$ 18.64 would make waves (c)=(a)! A 0.382 Fibonacci is located @ HK$ 17.88 from of advance from HK$ 9.20-26.94!
Traders who believe in the bullish count maybe open a first position in XIAOMI. A break of the HK$ 14.- level would make the move an A-B-C-pattern and can be used as a Stop-loss-level (weekly close).
Have a great weekend....
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
xiaomi gap fillxiaomi has rallied well forming a continuation gap on good earnings, this was followed by an exhaustion gap, now im looking for a panic sell and price to pullback to 19/20hkd which ive charted as a horizontal. gaps get filled 9/10 times, with 20hkd being near original ipo price it makes sense to bounce and strong demand at this price. short from here or buy at the gap choice is yours
Xiaomi as the Chinese "Apple" Xiaomi stocks are day after day moving up. After the new all time high price retracted, however transactions kept in high levels.
Looking at fundamentals there is a potential growing for this group as informations leaked say that a revolutionary mobile device is being developed by Xiaomi. Sales are increasing day after day around the world and their ecosystem is bigger and better day after day.
As we can tell, xiaomi is in world's mouth and consumers love for this brand starts to sound a bit like Apple enthusiasts.
Xiaomi 1810 Cup n HandleFor the past 5 weeks Xiaomi has shown a positive relative strength comparing to Hangseng index. The current price stand above ema 10 50 and 200 days representing a positive trend. It is forming a cup and handle pattern both in short and medium term trend. Positive momentum is likely to persist if the stock can break and stand above 13.28 Hkd.
