Trade of the Day

Ping An Insurance (Group) Company of China, Ltd (HKEX: 2318)

(Current Price: HKD$51.55) – TECHNICAL BUY

Buy price: HKD$51.55     Stop loss: HKD$48.50    

Take profit 1: HKD$56.00     Take profit 2: HKD$59.00

The price broke out of a bullish descending wedge and found support upon the retest with a hammer candlestick on 13^th April. Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) technical indicators are displaying bullish momentum.

The price could head to the first resistance level at HKD$56.00, which was a previous swing low support level in February and March this year now turned resistance.

It could then head to the next resistance level at HKD$59.00. This is confluent with a previous swing high resistance formed in February this year, the target level for the wedge breakout by taking the height of wedge (HKD$9.25) and projecting onto the breakout level as well as a 61.8% Fibonacci retracement level using the swing high of HKD$65.10 and swing low of HKD$49.75 as points of reference.

Expected timeline of the trade is 4-12 weeks from the date of report issuance.