STOCKWATCH: HKCB Bank test 250-day MA line support

HKCB Bank Holding (0655) slipped to the 250-day MA line of HK$2.7 yesterday with turnover increasing, which is believed that short-term investors absorbed it at low to bet on technical rebound. As reflected in charts, with RSI dipping through 20 and a technical over-selling coming out, a rebound is required in the short term. However, HSBC Holdings (0005) would release interim results next Monday, and the broad market and other banking stocks will be clouded with heavy cautious mood. Therefore, the stock is expected to hover around HK$2.7. Investors are suggested not to bet on the bottom for short-term. Resistance stance set at HK$2.9.

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