Bank of Communication Co Ltd (HKEX: 3328) technical is set to rally in the short-term:
- The rounding bottom formation is potentially setting to reverse to the upside after prices has tested the resistance level at HK$5.50 thrice with limited success of continuing on the downside.
- The morning star formation is indicative of a shortfall retracement which has potentially ended the triple top threat. Furthermore, the 3rd bullish candle has closed above the 22-day moving average, citing strong move in the short-term
- Prices is trending strongly all three major moving average after the Golden cross formation, which confirms the upside moves.
*Expected timeline of the trade is 8 weeks from the date of report issuance.
CHART LEGEND
Moving average
Red dotted line = 200 period Moving Average
Blue dotted line = 50 period Moving Average
Green dotted line = 22 period Moving Average