Technical Pulse: CNOOC Ltd January 27, 2022 957

 

CNOOC LTD  (HKEX: 883) Upside is set to continue based on technicals:   

 

  1. The bullish runaway gap above the resistance turned support level at HK$9.22 remains despite a consolidation. Furthermore, the risk of falling into an exhaustion gap is low as the price has been trending above HK$9.22 for more than 10 periods.
  2. The pennant formation above the resistance turned support level is a bullish continuation pattern.
  3. Ichimoku shows a strong three bullish golden cross signal and Wednesday’s bullish gap above the Tenkan-Sen cemented the bullish sentiment.
  4. The DM+ is sloping up again and with the ADX remaining above 40. This confirms the strength of the bullish trend.

 

 

*Expected timeline of the trade is 25 weeks from the date of report issuance.

 

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

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