China Aviation Ltd – Daily timeframe (Update from 29 Sept 16)
Current Sentiment: Bullish
Support 1: 1.300 Resistance 1: 1.455
Support 2: 1.260 Resistance 2: 1.515
The double bottom mentioned in the last update managed to hold up as price continued to hover around the 20 and 60 day moving average.
An increasing bullish momentum is spotted on 19/10/16 where price broke above the 1.360 range high and the newly formed pullback line. Moreover, the bullish break was backed by increasing volume that closed above the 20 and 60 day moving average as well.
Expect the uptrend to resume next to test the 1.455 resistance area followed by 1.515.
Note: Our current fundamental view on China Aviation is a Buy rating with a fair value of $1.920
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