Geely Automobile (HKEX: 175) trading range is likely to persist longer.Recent technicals indicate our previous report dated 30^th July is still valid after fresh signals emerge that a new upside will start once prices breach the HK$27.40 resistance level:   

1. The formation of the cup and handle formation has increased the probability of a bullish upside break. Furthermore, the handle/cup is well supported above all three key moving averages.
2. The resistance level at HK$27.40 has been tested multiple times and weakening it.
3. The 22-day short-term moving average has crossed above the 200 and subsequently the 50-day moving average. Signalling strong bullish sentiment ahead.

*Expected timeline of the trade is 15 weeks from the date of report issuance.