Technical Pulse: Sino Biopharmaceutical Ltd October 19, 2022 440

 

Sino Biopharmaceutical Ltd (HKEX: 1177) A potential pullback before heading higher in the bullish reversal pullback as:   

 

  1. The price broke above the downtrend resistance line and held at a triple bottom support area, pointing towards a bullish upside. A pullback to retest the recent swing high at 3.92, which is confluent with the ichimoku conversion and base line supports, is possible before heading higher as price is currently trading outside of the upper Bollinger band.
  2. The Moving Average Convergence Divergence (MACD) technical indicator is displaying increasing bullish momentum where its current value is above the zero line, providing a bullish signal.
  3. The price could reach the resistance level at 4.64 which is confluent with the ichimoku cloud resistance and 61.8% Fibonacci retracement using the recent swing low of 3.58 and recent swing high of 5.31.

 

 

*Expected timeline of the trade is 13 weeks from the date of report issuance.

 

CHART LEGEND

 

Red box = Resistance zone

Green box = Support zone

Blue line = Conversion line

 

Red line = Base line

 

Red area = Ichimoku cloud

About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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