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