Television Broadcasts (511 HK) – Buy on Range Bounce

Hi everyone,

today for something a little different I am looking at a chart that is in a decent sideways range and is showing some good characteristics for a bounce off the low-end.

The area that I have circled shows the price breaching the support level but you should note the very long-tailed candle which may be a good initial sign of a rejection of this level. Secondly you can see that the subsequent candle provided an engulfing pattern of the first which is the second bullish signal. Lastly, there was a crossover of the %k and %d lines on the Stochastic Oscillator which may be pointing toward a change in the momentum.

My preference on this trade setup would be to see the share price higher at the open of the next session and then make a decision from there depending on momentum that we see. I think an appropriate stop level would be $42.95 (just below the low of the last candle) with the initial profit target set for $47.12. Based on the closing price from Friday this would represent a risk:reward ratio of around 1:2 which is appropriate for this type of trade.

All the best,

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2 Responses to Television Broadcasts (511 HK) – Buy on Range Bounce

  1. Dylan says:

    Whats the ticker for this stock? – cant seem to locate it even under TVB…cheers!

    • David Land says:

      Hi there

      the official code is 511 but depending on what platform you are using it may be 0511. If you can do a word search I would hope that ‘Television’ would be enough to short list it which is what I used when hunting through charts today.

      Let me know if you have any other questions.

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