AVIC Capital Holdings Co Ltd(SHA:600705) Trading Outlook

AVIC Capital Holdings Co Ltd(SHA:600705) Trading Outlook

AVIC Capital Holdings Co Ltd(SHA:600705) Trading Outlook

HEFFX Notes AVIC Capital Holdings

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 5.99.

The projected upper bound is: 7.66.

The projected lower bound is: 6.71.

The projected closing price is: 7.19.

AVIC CAPITAL closed up 0.570 at 7.160. Volume was 666% above average (trending) and Bollinger Bands were 73% wider than normal.

Open           High           Low           Close           Volume
6.800          7.240          6.760        7.160           682,106,432

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages:     10-period                50-period                 200-period
Close:                           6.12                           5.92                            6.42
Volatility:                    69                              49                              62
Volume:                      173,052,944          98,584,928               123,056,320

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary AVIC Capital Holdings
AVIC CAPITAL gapped up today (bullish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.

AVIC CAPITAL is currently 11.4% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into 600705.SS (mildly bullish). Our trend forecasting oscillators are currently bullish on 600705.SS and have had this outlook for the last 1 periods. Our momentum oscillator is currently indicating that 600705.SS is currently in an overbought condition.

HEFFX Candlesticks AVIC Capital Holdings
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.

During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

HEFFX Momentum AVIC Capital Holdings
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 93.2773. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 14 period(s) ago.

Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 80.02. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 99 period(s) ago.

Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 341.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 period(s) ago.

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.

AVIC Capital Holdings CO.,LTD., is engaged in the operation of financial business and financial industrial equity investment business, with a focus on securities, leasing, futures, finance companies and trust operations. Its securities operations include securities brokerage, securities proprietary, underwriting and sponsoring, entrusted asset management and other business; financial operations include deposit and loan business; leasing operations include financial leasing and operation leasing of aircrafts, ships and other equipment; trust operations include fund trust, movable property trust and real estate trust businesses; futures operations include futures brokerage business, and commodity sales operations include production and sales of cell kit and medicinal edible oil. The Company operates its businesses in East China, North China, Northeast China, Northwest China, Southwest China and South China.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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