Sinotruk (Hong Kong) is testing the immediate resistance, and may be extending its bullish trajectory. Last Friday, the stock charted a bullish candlestick on strong volume and grazed the HKD18 resistance.
RHB Retail Research, in a note today (Jan 29), said if a bullish breakout occurs, this will boost the momentum and lift the stock towards the next resistance pegged at HKD19, followed by HKD20.
On the flip side, falling below the HKD16.50 support would kick off the correction phase.
China Railway Group crossed the immediate resistance and the bullish setup has been confirmed.
The stock broke past the HKD3.50 resistance to form a fresh “higher high” while trading volume has been increasing. This showed the bullish momentum is increasing speed now.
The stock should extend the uptrend towards HKD3.90, followed by HKD4.20. On the other hand, should it falls below the HKD3.25 support, this will negate the bullish setup.
