Postal Savings Bank of China (HKEX: 1658) double rebound in July has given some hope to further upside. Recent technical has also indicate strong potential upside:   

1. The ascending triangle formation indicate a potential bullish break to the upside.
2. Resistance zone at HK$5.80-HK$5.92 is potentially weakened due to multiple testing. Furthermore, Tuesday’s candle shows slight rebound above HK$5.42-HK$5.51 support zone and Tenkan-Sen as well.
3. Prices is trending above all 5 ichimoku indicators. Indicating bullish trend ahead.

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

*We believe that the major resistance zone will face another minor correction and should it corrects, the immediate support zone at HK$5.42-HK$5.51 must hold to valid the bullish upside mentioned in this report.