A follower asked me if he can start scooping up China banks since it is so low now.
I find it hard to answer this question because it is not a straightforward YES or NO.
We can see that ICBC has reached a peak of 7.50 in 2018 and for the last 2 years and 9 months, its share price is heading south.
Today, there is a 4.5% jump in its price. Nothing to be overly concerned imo as it is a healthy correction. 4.48 is a crucial weekly support level that was broken down on 31 Aug 20 and now the price is in the midst of a retracement.
Let's wait and see what happens when it comes back to this support turned resistance level at 4.48 again. Will it break out and continue the bullish trend ? If yes, then it might be worth exploring.
If not, then it could also perform a U-turn about reaching the resistance level and heads further south.
Some articles worth reading are here , here and here.
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as you can see clearly, no asterik means no action taken.
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adding some long position you can see that there is some support at 4 with 12 Oct long bullish engulfing candle closing above the first bearish trend line (dotted line). At 4.20 price range , another great buying opportunity, it pauses for a while before hitting higher to break the 4.48 resistance level and closed above it.
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you can see the support at 4.48 is fairly strong
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and it keeps on going up....
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We may see it coming back down to revisit the support at 4.48 again......buyers , get ready your ammunition
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Praise Lord. I get my wish , will be monitoring the prices this two days first.....
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facing resistance at 5.20 level. Be patient with this stock