Strategy:
Traders can look to buy between HK$85.00-HK$90.25 with a stop loss at HK$79.58. The 1st target price will be HK$98.23, 2nd target price at HK$102.31 and the 3rd target price at HK$108.23. 4th target price at HK$115.00.
Technical snapshot:
ENN Energy Holdings is likely embarking on a bullish mean reversion to the upside based on the price actions pointers highlighted below:
- The bullish candle was seen opening higher on Monday and closes back above the lower band of the Bollinger band, indicating last Friday’s bearish candle most likely a bear trap.
- Volume was seen rising strongly, supporting the bullish rebound.
- DM- was seen peaking, indicating that the bears may be at the tip of the strength.