SAIC Motor Corporation Limited : The area of CNY 12.2 might facilitate a technical rebound
By Maxime Nonglaton
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
CN¥12.4 | CN¥0 | CN¥11.9 | -100% |
SAIC Motor Corporation Limited shows relatively strong fundamentals and is coming back to attractive price.
According to Surperformance rating, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility.
Technically, the security fell sharply for several weeks. This fall has lead SAIC Motor toward the CNY 12.2 support area which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the CNY 13.29 resistance. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in the stock.
Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in SAIC Motor in order to benefit from the CNY 12.2 support area. A first target price will be the CNY 13.29 resistance, ie a potential of 7.2%. Only a crossing of CNY 13.29 would validate a bullish trend in order to aim a higher target price. A stop loss order will be placed under the CNY 12 area.