Technical Pulse: Sunny Optical Technology Group Co Ltd July 30, 2021 498

Sunny Optical (HKEX: 2382) sell-off after reaching the high at HKD$248.00 region was nothing more than a corrective based on the technical indicated. As such, price action indicates a potential break to the upside:

 

  1. The formation of the bullish flag not only is a bullish continuation pattern, but it also symbolise a shortfall throwback retracement.
  2. Candlestick formation on Wednesday and Thursday indicate a bullish consolidation and rebound from key levels. First, the bullish candle on Wednesday shows a strong bearish candle initially but the rebound away from support zone 1 at HKD$203.25-HKD$211.20 and the 63- period moving average indicate a rebound building up. True enough, the inside bar formation on Thursday close above the 22-period moving average further cement the bullish upside.
  3. Short-term bullish crossover is still valid after prices resume trending above all three moving averages.
  4. MACD is pending a crossover to the upside, once the crossover is complete, it will further cement the upside potential.

 

*Timeline of the trade is 15 weeks from the date issued.

 

CHART LEGENDS

 

Moving Average

Red dotted line = 200 Periods Moving Average

Blue dotted line = 63 Periods Moving Average

Green dotted line = 22 Periods Moving Average

 

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