Technical Pulse: Hong Kong Exchanges & Clearing Ltd April 21, 2021 423

 

HKEX Ltd (HKEX: 388) corrective downside has hit the bottom and based on the technical, the stock has confirmed the bullish return:

 

  1. The inverted head and shoulder neckline resistance turned support has been broken, confirming the inverted head and shoulder bullish reversal signal.
  2. Using Fibonacci extension on the head and shoulder, we could see that the 161.8% and 238.2% extension level confluence with the larger retracement level of 61.8% and 78.6%-88.6% of HKD$587.00-421.00 respectively.
  3. Ichimoku is showing a potential “3 bullish golden cross” after the initial tankan-sen crosses above the kijun-sen, followed by the chikou-span crossing above the candles. Although the Senkou-Span A is still below Senkou-Span B, Span A is showing some resilience by sloping upwards,

 

*Timeline of the trade is 8 weeks from the date issued.

 

CHART LEGENDS

 

Ichimoku Kinko Hyo

Red dotted line = 9 Periods Tenkan-Sen

Blue dotted line = 26 periods Kijun-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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