Bank of Communication (HKEX: 3328) has been on an accumulation phase since its bearish breakaway gap on 2^nd July. Recent technicals indicate potential upside after much sideway accumulation:   

1. The double bottom was confirmed after Monday’s bullish break above the resistance at HK$4.73. It also confirmed the ascending triangle formation.
2. Monday’s price action indicate a rebound above Ichimoku’s Tenkan-Sen. Indication of a bullish continuation.
3. Furthermore, the bullish rebound on Monday gapped up confirms last Friday’s Dragonfly doji.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

*The stock will have an added bullish confidence once it further breaks HK$4.82. Should a bearish candle close on the next day, there is a risk of confirming Monday’s candle as a hanging man.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line