With NYSE delisting China Mobile, global fund providers such as MSCI and FTSE are divesting their holdings in the company. The recent sell off by fund managers has led to the stock trading close at its 15-years low.
The price action is suggesting that the stock could be “capitulating” under massive sell volume. The stock could be bottoming out and potentially provide a window of opportunity for long term investors.
The company currently trades at 41.15 (at the point of writing this article), providing investors a decent dividend yield (based on 2019-20 dividend pay-out rate) close to 8%.
Should price level break above the 42.50, we could see the bulls back in control of the stock and potentially head towards first target level at 44.20.
If prices breakout even further above 44.20, the stock could move towards second target price at 50.
First Target – 44.20
Second Target – 50.00
Stop Loss – 39.00
All posts and charts are for educational and illustration purposes only