1) Technicals - bullish
Weekly chart:
- descending triangle from 15/02/21 to 21/02/22, resulted in a downward breakout. Places the mid term trend as downwards. This mid term trend part will make more sense later.
- symmetrical triangle from 14/03/22 (this is also the lowest price point) to 29/05/23, a continuation pattern with strong breakout potential. Should have 3 peaks and troughs. 3 troughs already exist and in the last 3 weeks/as of writing, were all bullish candles. This is a bounce off, suggest that the next breakout is upwards.
- the first 3 anchors to form typically is not the direction of breakout. Suggest that a upward direction is next
- wave 3 is likely to be the price movement from 01/04/2020 to 01/02/2022. Wave 4 is bearish and is denoted by the descending triangle. Wave 5 is bullish, expected to be the breakout direction - upwards.
- 01/02/2018 is the end of wave 1, wave 4 trough touches peak of wave 1, a strong indicator of wave 4. This helps confirm the wave pattern, thus, we are currently in wave 5.
Monthly chart:
- ma 50 serving as a strong support for the sym triangle.
- interestingly enough, ma 20 is serving as a resistance for the sym triangle with 2 peaks already touching it. Suggest that price is forming a third peak, thus, very well indicates a potential upward direction.
- vol is contracting and price is being compressed by the sym triangle, pattern confirmed.
- descending triangle serves as a,b,c waves, commonly seen in bearish waves. Suggest next wave will be bullish.
Summary: all in all, just based on technicals alone, bullish. Short term trend is up.
Mid term target: $39
2) Fundamentals:
A quick fundamental analysis
Fuyao sells glass windows for EVs.
Related to China EV, what more do I need to say.. w china being the top ev seller, as long as local demand stays strong and grows, fuyao will benefit.
$BYD COMPANY(01211)$ $NIO Inc.(NIO)$ and many other ev coys in china are a buyer of fuyao's glass windows. When these companies innovate or make higher sales, fuyao will indirectly benefit. These ev coys sales number will become an indicator of how well fuyao is doing.
All in all, a short fundamental writeup but does lend some weight to fuyao's attractiveness.
Verdict: good fundamentals?
Modify on 2023-06-20 09:41
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Technicals and fundamentals both bullish.
Might be a good buy opportunity.
Will add to my watchlist for now.
Looks promising. I'll do more research.