601818:SSEChina Everbright Bank Co., Ltd. Class A Analysis

China Everbright Bank Company Limited is priced at ¥3.02 and its moving averages line up in bearish order, the shorter trailing the longer. The last 30 days have lost 4.7%. With RSI at 46.0 the momentum picture is neutral, alongside a bullish MACD signal. Price has been bracketed by support at ¥2.92 and resistance at ¥3.10.
The shares look undervalued, trading on 6.3 times earnings below a sector average of 16.2. The average analyst target implies 12.9% above today's level. Revenue is contracting at 23.9% on a 40.1% profit margin. The 5.79% dividend yield looks covered by current payout levels.
Risk comes out at 3 of a possible 10, a low reading. With 30-day volatility of 16.3%, a beta of 0.14 and a maximum drawdown of 21.9%, the drawdown profile is forgiving relative to most of the market. The wider market backdrop reads extreme greed at 93 on the fear-greed composite.
Near-term and long-term part ways here — hold short-term against buy longer out, with 4/10 conviction on the long call.