STOCKWATCH: bet on rebound of Bank of East Asia

Bank of East Asia (0023) wobbled around HK$18 recently and stagnated in consolidation. From a short-term perspective, no signs of turnaround have surfaced and investors are suggested to stay sidelined. Today is the settlement day for the futures index, and the broad market is expected to suffer certain pressure. The stock, which will release interim earnings soon, will also undergo considerable selling pressure in the near future. Technically speaking, it should pick up certain technical support at the level of HK$17.4. Investors can bet on rebound modestly. Stop loss at HK$17 for short-term and resistance stance set at HK$19.

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