$CHINA MOBILE(00941.HK) barely moved today, closing at HKD 81.8, but looking at the daily chart is quite painful: the stock price is suppressed below all the 9-day, 21-day, and 50-day moving averages, with a 14-day RSI of only 20.6, indicating deep oversold conditions.
Within the Stock Connect high-dividend basket, it's the kind that falls in a very dull way—no sharp drop, just a slow, grinding decline to the point where no one discusses it.
Oversold doesn't mean an immediate rebound, but after the RSI hits just above 20, further selling usually just grinds on. Aggressive traders can try a left-side position near the HKD 80 mark, stop loss if it breaks below 80, with the first rebound target at the 21-day moving average of 84.7. The risk-reward ratio isn't bad.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
