Kailuan Energy Chemical Co.,Ltd. : Still short on chinese stocks
Entry price | Target | Stop-loss | Potential |
---|
CN¥10.04 |
CN¥0 |
CN¥10.2 |
+100% |
---|
Kailuan Energy Chemical Co., Ltd. operates in the coal mining and coal washing and processing industry.
From a fundamental viewpoint, the group is in a bad financial situation. The financial situation of the company is worrying with an important debt level. Leverage is at 1.27x for the current year. Analysts have recently downgraded their forecasts for earnings per share. This indicator is often a precursor of a declining profitability and a worsening climate of investor confidence.
Graphically, we can see that the stock is in a bearish trend with decreasing moving averages, which serve as slant resistance. The security is moving towards CNY 9.30 in daily data, the next support area. Taking into account fundamental and technical elements, investors can initiate a short position in with a price target at CNY 9.30, as first target. A return towards CNY 10.1, the short-term resistance area, will invalidate the bearish strategy, which justifies a stop loss.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.