Support 1: 6.16                       Resistance 1: 6.28

                                                   Resistance 2: 6.74

China Construction bank has been trading at the lower bound of its price range and based on the technicals, we expect a bullish rally is well underway. Although all 3 major moving averages are pointing towards a continuation of the bearish momentum, the stock’s bullish sentiment outweigh the moving averages reading.

Apart from that, prices have been testing and closing above the 88.6% of the Fibonacci retracement, which confluence with the strong area of demand. Also, the stock has formed a potential double bottom near 88.6% of the retracement level with Stochastic pointing to an oversold indication.

CHART LEGENDS

Red line = 200 periods moving average

Blue line = 50 periods moving average

Green line  = 22 periods moving average