Technical Pulse: Ping An Healthcare and Technology Co Ltd June 18, 2020 516

Ping An Healthcare and Technology (HK: 1833) bullish upside has panned out as per our report dated 21st May. However, recent technicals reveal that the stock is unlikely to hit our target price mentioned. The stock is expected to correct further based on the wave analysis:

  1. The double three formation which consist of a flat, any three sub-3 wave and zig-zag formation, marked out by wave W and X In the chart. The current technicals indicate a potential start of wave Y, which mark the new zig-zag wave.
  2. Price action suggests that the stock has broken out of the bullish flag formation but prices remain below 78.6% of Wave W. Hence, the possibility of this as a false breakout rises with the recent bearish candle close below the 50% length of the shooting star.
  3. Price will test the immediate support at HK$95.80.

 

 

*The technical call is valid only for 3 weeks.

* The stock is still in a bullish trend as indicated by the 50 and 200-day period moving average. The short call is taking advantage of a potential correction.

*Double three formation is a complex Elliott wave corrective wave which consist of a flat, any three wave structure and lastly a 5-3-5 zig-zag wave structure

 

CHART LEGENDS

Moving Average

Red dotted line = 200-day period moving average

Blue dotted line = 50-day period moving average

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