Geely Automobile Holdings Ltd (HKEX: 175) rebound at HKD$17.50 was we sustained after it broke the downward channel from January 2021 – May 2021. Technical and price action also indicate that the upside will continue:
- The formation of the recent falling wedge has been broken on Thursday and the bullish candle gap up strongly above the down sloping resistance line of the falling wedge.
- The bullish candle also gap above the 22-period moving average and it is an confirmation of the bullish hammer on Wednesday, which also rebounded above 63 and 200-period moving average.
- The falling wedge is also an indication of a shortfall retracement. Meaning, there is a high probability that the 50.0% Fibonacci retracement level from 36.45-17.34 will be broken above.
- The bullish cross over in late June 2021 period is a testament of a strong bullish upside ahead.
*Timeline of the trade is 12 weeks from the date issued.
CHART LEGENDS
Moving Average
Red dotted line = 200 Periods Moving Average
Blue dotted line = 63 Periods Moving Average
Green dotted line = 22 Periods Moving Average