COVID Backlash in China
Shares in Sands China Ltd, the leading developer and owner of integrated resorts and casinos in Macau are in freefall today. The drop in the stock’s price comes in response to news that China has shutdown all casinos and resorts in Macau as a result of soaring COVID cases there. The city will undergo a week long lockdown while authorities carry out mass testing, the results of which will determine whether the lockdown is lifted or extended.
Gambling stocks across the region have come under selling pressure. However, given Sands’ status as the leading company, the group seems to be taking the biggest hit with shares dropping over 6% today and looking vulnerable to further downside as the lockdown progresses. Indeed, if the lockdown is extended beyond a week, this will be highly bearish for Sands’ stock.
Technical Views
Sands China Ltd
Following the latest test of the 19.18 level, Sands’ share price has since turned lower. With MACD and RSI turning lower quickly, the focus is now on the 16.74 level, a break of which will pave the way for a run down to test the YTD lows at 13.78. Only a break above the current 19.18 highs will alleviate near-term bearishness.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.