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ASM Pacific Technology Ltd (HKEX: 522) has been on a corrective downtrend since January 2021. Recent technicals indicate that there is a potential upside in prices:   

  1. The smaller falling wedge (red dotted line) has been broken out, increasing the chances of a bullish rebound.
  2. Potential double bottom is spotted. Just need prices to break the neckline resistance zone at HK$86.73-HK$89.39 to confirm the double bottom formation.
  3. Bullish candle on Wednesday close with strong price action. The candle also rests on its support of the Tenkan-Sen and Kijun-Sen bullish crossover.
  4. RSI bullish divergence has been spotted. Indicate strong bullish momentum ahead.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

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CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line