TravelSky Technology (HKEX: 696) upside is returning based on technicals:   

  1. The larger descending triangle is likely to be breaking to the upside after prices failed to break below the support at HK$12.00 on 21st This indicates that the bullish momentum is strong.
  2. The inverted head and shoulder is likely to be confirmed after a bullish engulfing candle is seen at the right shoulder and with the buying momentum it is likely to break above the resistance zone.
  3. The ADX is bottoming below 10, a likelihood of an exhaustion and thus returning to an uptick, which signifies a return of the trending market.
  4. Adding to that, the DM+ has crossed above the DM-, a sign of the bullish trend returning.

*Expected timeline of the trade is 25 weeks from the date of report issuance.

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