STOCKWATCH: hold SmarTone for mid-term if HK$10 is kept

SmarTone Telecommunications Holdings (0315) rebounded to the high level of HK$11 over vivid turnover in the past two weeks. With RSI at 80 and an over-buying emerging, it retreated to consolidation and gained support at the gateway of HK$10. Affected by the market expectation that British Telecom will sell its 20% shares in the company, it stabilized amid the market this morning and is expected to rebound to a higher level in the late trading. Investors are advisable to absorb it around HK$10.2. Near-term resistance stance set at HK$11. Stop loss at HK$10 for short-term.

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