AMTD Digital (HKD) is back as shares rise 57%
- HKD rallied more than 300% on Wednesday.
- HKD has charged up more than 57% toward $300 on Thursday.
- AMTD Digital was halted 11 times during Wednesday's session.
AMTD Digital (HKD), the Chinese penny stock that was momentarily worth more than Walmart (WMT) back in early August, is once again making waves. It opened about 34% higher on Thursday after rallying over 300% on Wednesday. Currently, it is trading up 57% at $297.
Shares of the shadowy investment banking platform out of Hong Kong famously rallied more than 33,000% in the two to three weeks following its IPO in mid-July. On Wednesday trading was halted 11 times due to volatile price action. The issue with HKD stock is that it has a small float. Out of the 185 million-odd shares outstanding, only 19 million are available for trading.
No significant news of any kind fomented the rally on Wednesday. Prior to that, the stock has been moving steadily lower since it reached its climax on August 2 of $2,555. On Tuesday, September 13, HKD closed at $46, more than 98% off its all-time high.
In case you are new to this name, AMTD Digital is a subsidiary of Hong Kong-based AMTD IDEA Group. The subsidiary runs an investment bank out of Hong Kong as well as a related asset management platform. AMTD Digital also brokers insurance products and consults on strategic investments. The firm appears to help Hong Kong and mainland Chinese startups access capital from primarily foreign markets. It runs a platform called AMTD SpiderNet, which connects these startups to capital.
AMTD Digital stock forecast
This type of speculative, crypto-like play cannot be easily forecasted. It has no fundamental qualities to speak of, and nearly all traders buying this ticker are trying to resell in short order. In this case the next pivot point, R1, at $586 is right in line with my earlier hunch. The August 4 low and August 8 high both overlap right around this area and embue it with relative importance. The next pivot, R2, sits at $772. Good luck!
HKD 1-day chart
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Author
Clay Webster
FXStreet
Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.
