Today there will be a few Hong Kong large cap names releasing earning results and one of them is Ping An Insurance (2318 HK). It is worth noting that yesterday before the Hong Kong & Shenzhen Connect announcement, the northbound net buy was the highest in one year record and that Ping An Insurance was the top buy name among all the stocks.
Today Ping An Insurance is trading slightly lower ahead of its results, and it could just be a technical pull-back from profit taking from yesterday. It is interesting to see that Ping An Insurance’s implied volatility volume has risen significantly as seen from the yellow triangle displayed below. Note that when Ping An Insurance’s implied volatility volume spiked up last three times on January 12th, April 13th and July 15th this year, its share price always reacted strongly.
Ping An Insurance – Implied Volatility Summary :
Ping An’s implied volatility high volume signal on January 12th, April 13th and July 15th this year, and the current high volume signal:
Ping An Insurance share price’s responses on the days where it had implied volatility volume spike:
OTAS has fired a Bollinger Band (-) signal 4 days ago and on average the stock might generate 5.0% return over the following 20 trading days. Perhaps it could now be a good time to add positions before the results come out?