The chart outlook has turned bullish as price broke above the cloud in the previous trading session. Price is also trading above the base line. MACD is rising towards the zero line after having a bullish crossover, suggesting the increased upward momentum. Conversion line is turning up for a bullish conversion and base lines crossover. We could see price moving higher in the next 1-2 weeks as long as long as it stays above the cloud.
The downtrend remains intact as price is trading below the cloud. Conversion and base lines remain in a bearish crossover that hints at potential downside ahead. Lagging span is below price of 26 days ago and below the cloud, confirming the bearish price trend. It further violated its recent price low with a falling window. MACD is bearish and is heading lower. These could increase chances of the stock price moving lower.
Price continued to move higher with a long bullish candlestick pattern after resting at the cloud support since the breakout. There was also a gap create, hinting of an acceleration in the uptrend. Lagging Span is above the cloud and above the price of 26 days ago, confirming the bullish trend. There is still a bullish Conversion and Base lines crossover that hints for the upside ahead. The MACD is bullish and is moving higher. We are likely to see price continuing to move higher to the next resistance point at HK$3.79.
Outlook Price is now reaching the cloud support, which also coincides with the gap support and the Fibonacci 62% correction point of Oct-Nov 20’s rally. The thick cloud is also a hint of a strong support at this zone. The MACD is still strong and bullish now, with both of its lines above the zero line. Conversion and Base lines had a bullish crossover earlier and is hinting of a bullish price trend ahead. As long as this support zone holds, there is chance for price to rebound from here to a higher level.
Price has completed its corrective rally with a bearish Engulfing candlestick pattern. The rally was also resisted at the previous price low of $5.20 which has become the key resistance point. Despite a $0.60 rally in price, the middle band in the Bollinger Band indicator did not turn up but instead move sideways. This could be a hint that the recent rally was only a corrective rally. RSI was also weak during the corrective rally. RSI was not able to move above a reading of 60. This is another indication of a corrective rally. We think price will not go above $5.20. Price is likely to test the low of $4.60 again.
Price has likely completed its rally with a high at $6.38. On the day of the high, there was a bearish reversal Shooting Star candlestick pattern. It was followed by 2 days of strong decline as seen by the 2 long red candlesticks. Price high was also near to the upper band of the Bollinger Band. Price also broke a short term rising trend line. RSI has a bearish divergence warning. RSI has also failed to move higher than a reading of 60. All these signs are pointing to a price decline to $5.95 which is the base of the price gap.
