Technical Pulse: ZTE Corp February 24, 2020 327

 

Although ZTE Corp (HK: 763) ZTE main price trend is still bullish with the new highs, based on the technicals, there is a high conviction the stock is headed for a hard correction:

  1. ZTE Corp’s recent price action indicates a cluster of 4 candles displaying weak bullish momentum and all 4 failed to break the 33.00 psychological resistance level.
  2. Last Friday Graveyard Doji closed below 33.00 psychological resistance, indicating weakness ahead.
  3. Stochastic oscillator shows that the stock is currently overbought as the indicator has displayed an overbought crossover.
  4. RSI shows both bearish divergence and overbought above the 60 overbought line.

 

*The technical call is valid only for 3 weeks.

*The overall trend is still bullish and therefore this short call is to take advantage of the correction. Strong possibility of rebounding at the demand zone highlighted is high.

 

CHART LEGENDS

Stochastic Oscillator

Period = 14

%K = 3

%D = 3

 

Red line = 80 Overbought

Blue line = 20 Oversold

Get access to all the latest market news, reports, technical analysis
by signing up for a free account today!