Technical Pulse: Bank of Communication Co Ltd May 6, 2021 470

 

Bank of Communication Co Ltd (HKEX: 3328) technical is set to rally in the short-term:

 

  1. 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.
  2. 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
  3. 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

 

 

 

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