Geely (HK.0175): Mean Reversion Play

Published On: 4 September 2023, 11:00 AM | Sean Ng,  Dealer

Key Entry Price Pivot(s):
  • $10.00
Recommended Trade:
  • Short below $10.00, take profit at $9.00, stop loss at $10.20
Alternative Case:
  • Long above $10.20, take profit at $11.64, stop loss at $9.90
  • Geely has been consolidating in a range since March 2023
  • It recently broke to the upside out of the range, but failed to make a higher high, returned back to the range and continued consolidating
  • It has recently shown signs of a pull back again within the pink channel
  • The 20/50/100 exponential moving averages continue to remain flat
  • RSI also shows early signs of downward momentum
  • We potentially can look to play a mean reversion trade off the edges of the range