Ping An Healthcare and Technology (HK: 1833) bullish upside has panned out as per our report dated 21^st May. However, recent technicals reveal that the stock is unlikely to hit our target price mentioned. The stock is expected to correct further based on the wave analysis:

1. The double three formation which consist of a flat, any three sub-3 wave and zig-zag formation, marked out by wave W and X In the chart. The current technicals indicate a potential start of wave Y, which mark the new zig-zag wave.
2. Price action suggests that the stock has broken out of the bullish flag formation but prices remain below 78.6% of Wave W. Hence, the possibility of this as a false breakout rises with the recent bearish candle close below the 50% length of the shooting star.
3. Price will test the immediate support at HK$95.80.

*The technical call is valid only for 3 weeks.

* The stock is still in a bullish trend as indicated by the 50 and 200-day period moving average. The short call is taking advantage of a potential correction.

*Double three formation is a complex Elliott wave corrective wave which consist of a flat, any three wave structure and lastly a 5-3-5 zig-zag wave structure

CHART LEGENDS

Moving Average

Red dotted line = 200-day period moving average

Blue dotted line = 50-day period moving average