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Automotive HKSE

Geely Automobile (0175): Possible price consolidation

 

Geely break its support way back in Nov/Dec 2010. And ultimately, break down from the kumo support from 3.60

Since then, the sharp drop has slowly disappear and the price has slowly consolidated around 2.80

Current support from the Ichimoku chart shows $2.78 as identified by the Chikou Span.

Second support is around $2.55 that came from the price action way back in September 2010.

The Tenkan sen and Kijun sen seems to be flattening which adds further to the possibility that the price is consolidating.

Immediate resistance is around $3.10 as shown by the kumo. However, the kumo is not thick.

A strong basing off this level will easily allow Geely to go above $3.10

Likewise, if the consolidation at this level leads to another round of sharp fall in price spells problem.