Technical Pulse: Geely Automobile Holdings Ltd July 30, 2021 465

 

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:

 

  1. 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.
  2. 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.
  3. 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.
  4. 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

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