Strategy:
Traders can look to buy between HK$9.71 to HK$8.73 with a stop loss at HK$8.40. The 1st target price will be HK$11.26, 2nd target price at HK$11.72 and the 3rd target price at HK$12.24. 4th target price at HK$13.00
Technical snapshot:
MGM China is embarking of a complex corrective wave and recent price action is suggesting that there is a potential first leg of an impulse move towards the upside:
- The broadening wedge formation is indicative of a potential upside.
- Bullish marobozu was seen closing above the cloud and 9, 26-period conversion and base line of the ichimoku.
- Modified stochastic oscillator is rising and it confirms the bullish momentum.
- Rising volume is seen supporting the early upside move.