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Ming Yuan Cloud Group Holdings Ltd (HKEX: 909) has been on a corrective downtrend since February 2021. Recent technicals indicate bullish upside:   

  1. The falling wedge formation is pending a breakout once it crosses above HK$29.70-HK$31.39.
  2. Potential triple bottom formation is seen after prices remain supported at key support zone HK$21.93-HK$23.80.
  3. The third bottom is a potential cup and handle formation. A key bullish reversal pattern. The handle is seen supported by the 20-period MA of the Bollinger band.
  4. MACD bullish divergence and the recent bullish cross of the fast and slow signal line gave an added boost to the bullish upside.

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

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CHART LEGEND

Bollinger Band

Standard Deviation = 2

Red dotted line = Upper Bollinger Band

Blue dotted line = 20 Periods MA

Green dotted line = Lower Bollinger Band