China Evergrande Supported By a Rising Trend Line

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By :  ,  Financial Analyst

China Evergrande ( Supported By a Rising Trend Line

China Evergrande (3333), a top tier Chinese property group, announced that contracted sales increased 12.5% on year to 60.22 billion yuan in May.

The stock edged higher after breaking above the Pennant pattern and reached the second resistance level. Currently, the prices are supported by a rising trend line drawn from March low on the daily chart. The golden cross between 20-day and 50-day moving averages has been identified, helping to enhance the bullish outlook. The RSI is locating at 60s, suggesting the upside momentum for the prices.

Bullish readers could set the support level at the previous low at HK$14.70. The resistance levels would be located at HK$19.30 (the high of February) and HK$20.80 (the gap occurred on January 17).

Source: GAIN Capital, TradingView
Related tags: Equities China

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