Technical Pulse: Hansoh Pharmaceutical Group Co Ltd February 20, 2020 361

Hansoh Pharmaceutical group (HK: 3692) has one more bearish leg before a strong rally based on the technicals below:

  1. The stock has entered into a 5-wave rising wedge formation with the stock forming a (ii) wave of the larger D wave.
  2. Bearish engulfing candle at 38.2% Fibonacci retracement of 20-30.45.
  3. The strong demand level near 24.00 region may be a potential rally point. Therefore the bearish correction probability is higher.

 

*The technical call is valid only for 3 weeks.

 

CHART LEGENDS

Stochastic Oscillator

Red line = 80 Overbought

Blue line = 20 Oversold

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