Strategy:
Traders can look to buy between HK$40.70 – HK$37.52 with a stop loss at HK$34.40. The 1st target price will be HK$46.25, 2nd target price at HK$49.88 and the 3rd target price at HK$54.10. 4th target price at HK$59.00
Technical snapshot:
WuXi Biologics (Cayman) Inc. is likely bottoming out after price action and volume analysis suggest a possible mean-reversion to the upside:
- Selling climax on 20 June did not follow through hence it may be a signs of bearish exhaustion, with the volume peak on the same day.
- Larger falling wedge pattern is indicative of a potential bullish reversal.
- The bullish break has seen strong closure above the consolidative range’s resistance turned support at HK$39.18 and stay supported above the 9-period conversion line.
- Rising volume supports the breakout of the range.
- Stochastic oscillator sees an early stage of oversold crossover.
DM- has been declining, forming lower highs, indicating weakening of the bearish
strength.
