Technical Pulse: China Railway Construction Corp Ltd January 15, 2020 276


China Railway Construction Corp Ltd (HK: 1186) is expected to continue its upward momentum after a prolonged decline based on the technicals below:

  1. Falling wedge formation above the 50% Fibonacci retracement level of 40-9.18 and confluence with the support level at 8.79.
  2. Bullish pin bar above the support level of 8.79 and the 50% retracement level. On top of that, the bullish pin bar had the same low as the previous candle last Friday, resembling a tweezer bottom.
  3. The 22 SMA crosses over the 50 SMA early Jan 2020, forming a bullish crossover.


*The China Railway Construction call is valid only for 4 weeks.

*Although there is a strong upside momentum, the stock might correct further into the demand zone near 78.6% of the Fibonacci retracement level and stage a rally from there.



Simple Moving Averages

Blue dotted line = 50 SMA

Green dotted line = 22 SMA

Join our telegram channel on technical analysis for trends, entry and exit prices over Stocks, ETFs, and Indices!

Featuring regular TA posts and requests to analyse specific stocks
Click to join!
Notify of
Inline Feedbacks
View all comments

Get access to all the latest market news, reports, technical analysis
by signing up for a free account today!