CNOOC LTD (HKEX: 883) Upside is set to continue based on technicals:
- 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.
- The pennant formation above the resistance turned support level is a bullish continuation pattern.
- Ichimoku shows a strong three bullish golden cross signal and Wednesday’s bullish gap above the Tenkan-Sen cemented the bullish sentiment.
- 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