Nongfu Spring Co Ltd (HKEX: 9633) Potential breakout of a consolidation triangle to retest the confluence of uptrend channel and previous swing high resistances at HKD$52.00:   

1. The price has consolidated in a triangle and has been forming higher lows recently, a bullish signal for a potential breakout.
2. The Moving Average Convergence Divergence (MACD) technical indicator is currently displaying a bullish momentum with the sustained crossover of the MACD line over the Signal line, while remaining above the zero line.
3. The price could first retest the HKD$48.35 level in the resistance zone of HKD$47.40-49.00, confluent with previous swing highs formed in March & October 2022. It could then head to the HKD$52.00 level thereafter in the resistance zone of HKD$50.80-52.00, confluent with a previous swing high formed in January 2022 and the uptrend channel resistance by taking the height of the consolidation triangle (HKD$6.65) projected onto the breakout point.

*Expected timeline of the trade is 13 weeks from the date of report issuance.

CHART LEGEND

Red box = Resistance zone

Green box = Support zone