After China raised its interest rate and bank reserve rate, almost all of the Chinese Bank stock prices slumped hardly. It is reasonable though. Today let's see one of the leading banks.
Daily chart of ICBC (1398.HK):
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjj4BPeyILhKJsgjESdi3i5B8BkCkSwhwMoeA47T5RSDt9rQfqUwbMwyS6-6x3GFB-i25BxELt7g7yEDoozSVDNvW4WZD62oErYeDaSwajgCH9lV6-AS3tptE8KvhCnK7zUFItIVOiYkU8g/s400/2011-07-14+1398.jpg)
ICBC has been staying well above the red up-trend line until this week. We can see that it broke down the line two days ago. Break down pattern is yet to be confirmed, but it is quite likely that the stock price is under bearish trend.
The purple pitchfork is a short-term channel for the bank. After reaching the middle line, the price rose a bit yesterday. But in general, I think it will slump even further.
Resistance is undoubtedly the red up-trend line (around 5.75).
For the downside, the pitchfork acts as a tool restricting extremely high volatility drop (although the slope of this pitchfork itself is quite steep). Strong support will be at around 5.3 and 4.4. The latter one sounds too far away, but it isn't impossible given current poor investment atmosphere and concerns over debts (not only PIIGS, but also US).
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