Technical Pulse: China Suntien Green Energy Corp Ltd November 25, 2021 308

China Suntien Green Energy (HKEX: 956) (A) (B) (C) corrective wave has come to an end after technicals indicate a bullish rebound is brewing:   

 

  1. The formation of the falling wedge is a strong potential signal for a bullish continuation.
  2. The bullish engulfing candle was spotted reversing at the 200.00% Fibonacci extension of the double top formation from September to October. The bullish engulfing candle  also closed above the Tenkan-Sen.
  3. The MACD has shown potential for a crossover. If successful, it will further enhance the probability of the upside.

 

 

*Expected timeline of the trade is 15 weeks from the date of report issuance.

*Should the price fail to close above the HK$6.00 psychological resistance, then there is a possibility of the price falling to support zone 1 at HK$4.77-HK$5.78

CHART LEGEND

 

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line

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