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 13th 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.
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