Hisense Electric is a publicly trading company listed on the Shanghai Stock Exchange since April 1997. HEC is a reputable home appliance company in China involved in the research, development, manufacturing and marketing of TVs, digital TV broadcasting equipment, and information network terminal products. As the largest subsidiary in Hisense Group, the company possesses the most advanced DTV production lines in China and has an annual output of 16.1 million color TVs. The CNY 8.87 support, currently tested, should allow Hisense Electric to rally again.

From a fundamental viewpoint, the company is undervalued compared to industry, as its enterprise value ratios shows. Moreover, recently, EPS estimates for the two coming years have been revised upward by analysts. This positive fact opens the way for a better evaluation of the security by investors.

The security follows a downward trend in the short term, under the CNY 10.33 resistance area. The trend is bearish also in the mid-term, under CNY 10.33. However, the selling pressure could run out of steam soon. Indeed, whereas the stock shows an oversold condition, the CNY 8.87 support area currently tested might stop the bearish trend in the short term.

So as to make the most of a potential technical rebound of Hisense Electric, it seems opportune to take a long position at the current price. A confirmation of this pattern would enable the security to reach the CNY 10.33 resistance, with a potential gain of 15.4 %. Investors should not insist under CNY 8.87 and are better to place a stop loss order under this threshold.