Jiangxi Copper is eyeing to stage a bullish breakout, testing the HKD13.26 immediate resistance with bullish candlestick.
RHB Retail Research, in a note today (Sept 20), said the stock has been observed crossing above the 21-day SMA line and charting a series of “higher highs”.
Coupled with the increasing volume, a strong bullish momentum is underway. If it breaks past the HKD13.26 immediate resistance, the momentum will lift the counter towards the next resistance at HKD14, followed by the HKD14.80 level.
On the flipside, China Coal Energy is poised to extend its upside movement after breaking past the immediate resistance on strong volumes. The stock climbed above the HKD6 resistance to form a fresh “higher high”.
The 21-day SMA line has been seen curving higher, suggesting the short-term trend has turned positive.
RHB expects a follow-through of the positive price action to test the next resistance at HKD6.40, followed by HKD6.80.
On the other hand, falling below the HKD5.70 support negates the bullish setup and sets off the correction phase.