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SEHK 2331 Li Ning; The Chinese Sportswear WinnerChina sportswear players in 1H20 overall delivered in line or better-than expected results. Li Ning has outperformed its peers (Anta and Xtep) this year with core earnings up 22% y-o-y. This is mainly due to its elevated brand presence and increase efficiencies in the business. Although sales and margins were evidently impacted by Covid-19, I remain extremely optimistic that the China sportswear sector can emerge as a winner in a post-Covid environment. Overall, I believe that Li Ning can emerge a winner in the coming years for a few reasons: 1) With an increasingly affluent and health conscious Chinese population, people are willing and able to pay a premium to stay fit. According to a study by GlobalData, the number of affluent population, including mass affluents (holding liquid assets of US$50,000–1m) and High-net-worth (HNW) population (holding liquid assets of more than US$1m), is expected to grow from 40.13 million in 2018 to 56.67 million in 2022. Thus, Li Ning is positioned to benefit from a trend like this. 2) Li Ning is a pure China play, and therefore is immune to global uncertainties like the US/China tensions. 3) Unlike its peers, Li Ning adopts a single brand strategy, while players like Anta owns separate brands (Fila). Moving forward, I believe this can allow Li Ning to further achieve allocative and productive efficiency, thereby snatching up more market share to emerge as the top Sportswear Brand in China. On the technical chart, Li Ning has shown a pattern of a consistent uptrend with higher highs and higher lows. While it did form a double top, - indicating massive resistance at the $47.7 level - it has found a nice support at $42.1. Today, it has formed a bullish engulfing candle to close the session with technical indicators looking to turn bullish. Overall, I think that it is okay to take a position at this level and to see if Li Ning can break past the resistance at $47.7. I personally see a lot of room for Li Ning to run, with a personal target price of $51 for a swing trade.
HKEX:2331Long
by cletibals
BABA | HK.9988 Forming Bullish Harmonics PatternChart showing that market trying to break the support line at 248-250. If it breaks, it may form (Bullish) Harmonics Butterfly Pattern. Butterfly Rules AB can retrace up to 78.6% of the XA leg BC can retrace between 38.2% – 88.6% of AB CD can be an extension of 1.618% – 2.618% of AB CD can also be an extension of up to 1.272% – 1.618% of XA leg The point D is known as the PRZ or Potential Reversal Zone From Point D, a trade can be entered with stops at or above (below) the price point at D. Butterfly Target Levels Once a position is entered at D, profits can be booked at 61.8% of CD with the second target at 127.2%. Despite the above rules, in real-time such textbook patterns that qualify every point of the swing legs do not form as expected, so traders should be a bit flexible while identifying the butterfly patterns. HKEX:9988 NYSE:BABA
HKEX:9988Long
by jasonchandraa
Tencent might see further downside given more stricter scrutiny!China’s antitrust watchdog fined Alibaba Group Holding Ltd. and a Tencent Holdings Ltd. unit over a pair of years-old acquisitions and said it’s reviewing an impending Tencent-led merger, signaling Beijing’s intention to tighten oversight of internet sector deals. The penalties come after regulators last month declared their intention to increase scrutiny of China’s largest tech corporations with new anti-monopoly rules. Beijing in November unveiled draft regulations that establish a framework for curbing anti-competitive behavior such as colluding on sharing sensitive consumer data, alliances that squeeze out smaller rivals and subsidizing services at below cost to eliminate competitors. Shares in Alibaba and Tencent extended losses and closed down more than 2.5%.
HKEX:700Short
by ella519
Watching The monthly chart All the moving averages are showing downwards momentum. 200 ma (Grey Line) is bullish that is due to historical rally from 2002 to 2011.Then we have a black sr line that shows resistance on four occasion starting from feb 2012 to sept 2014. Then it was broken on April 2018 and provided support but failed to make higher highs and formed a declining wedge. Break of the wedge on 2 March 2020 triggered a sell off till the Support rectangle. RSI is currently showing no divergence which tells that the downtrend does not show fear or greed but some fundamental catalyst existence. Will only buy after break and confirmed back test of Black line. thanks for reading. Appreciate comments and feedback
HKEX:883
by UnknownUnicorn10209036
Samsonite | SellPrice reached 2.5yr downtrend resistance. Technicals also showing negative divergence. Rally hitting key fib retracement levels. RSI could fall back down into bear-range. Fundamentally, I've being bearish on Samsonite ever since they (over) paid Tumi back in 2016. Luggage is a commoditised product. Online competition was becoming fierce (Away Travel was just launched offering lifetime warranty, Xiaomi had one of the best carry-ons I've seen for <US$80, and so many generic brands on tmall and jd.com, etc). I even did a quick scan of 2000 tourists at a cruise terminal in China; Not too many carried Samsonite (various brands under the group), and the ones that did had the low-end brand/models. So..time to sell. The bearish fundamental story have not changed. Bad pre-covid. Very bad during-covid. Still be bad after covid.
HKEX:1910Short
by ChartingAround
Everyone is talking about Vaccine ..........Oh , come on ! Give the humans race a break !!!! We need to get out and live our lives like before... Work........Dine outside........Fun and Entertainment........Play sports........Pub Hanging........Watch a Movie.........Picnic..........the list goes on....... Now, the vaccine is getting closer to being launched and everyone can't wait to get themselves vaccinated with it. This is one promising Vaccine stock that I am eyeing. It has broken out of the bearish trend and is expected to go higher ......... Also notice that it has triple support at the blue dotted line at 141.6
HKEX:6185Long
by dchua1969
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