Overview
John Keells Holdings (JKH) is the largest publicly listed company on the Colombo Stock Exchange (CSE), known for its strong fundamentals, high liquidity, and blue-chip status.
Strategy
This trade is based on a technical breakout pattern, supported by the recent upgrade of Sri Lanka’s foreign currency (FC) credit rating from default to CCC+ with a stable outlook.
The ratings upgrade is a significant catalyst for the CSE, as it reopens the market to large foreign institutional funds previously restricted by sovereign risk thresholds. These funds typically favor liquid counters with high capitalization, making JKH a prime beneficiary.
Technical Analysis (Chart Patterns)
On 19th September 2025, JKH initiated a breakout from a descending wedge pattern.
• The upward momentum is expected to continue in the near term, bolstered by the positive sentiment from the ratings upgrade.
• The LKR 24.00 zone represents a key supply area and a potential resistance zone.
Potential Pattern Targets
Initial Pattern Target : LKR 25.60 (> 14% upside)
Extended Breakout (above LKR 24.00) : LKR 27.00 (> 17% upside)
Invalidation
A daily close below the support line marked as ‘0’ would invalidate this bullish setup.
John Keells Holdings (JKH) is the largest publicly listed company on the Colombo Stock Exchange (CSE), known for its strong fundamentals, high liquidity, and blue-chip status.
Strategy
This trade is based on a technical breakout pattern, supported by the recent upgrade of Sri Lanka’s foreign currency (FC) credit rating from default to CCC+ with a stable outlook.
The ratings upgrade is a significant catalyst for the CSE, as it reopens the market to large foreign institutional funds previously restricted by sovereign risk thresholds. These funds typically favor liquid counters with high capitalization, making JKH a prime beneficiary.
Technical Analysis (Chart Patterns)
On 19th September 2025, JKH initiated a breakout from a descending wedge pattern.
• The upward momentum is expected to continue in the near term, bolstered by the positive sentiment from the ratings upgrade.
• The LKR 24.00 zone represents a key supply area and a potential resistance zone.
Potential Pattern Targets
Initial Pattern Target : LKR 25.60 (> 14% upside)
Extended Breakout (above LKR 24.00) : LKR 27.00 (> 17% upside)
Invalidation
A daily close below the support line marked as ‘0’ would invalidate this bullish setup.
Trade active
Uptrend was disrupted by negative sentiment stemming from the ongoing dispute between the Government of Sri Lanka (GOSL) and BYD/JKCGA, related to import tax concerns on BYD electric vehicles.Monitor the situation closely, as developments may influence direction.
Trade invalidation not triggered yet.
Note
JKH closed on top of the invalidation point. (Not breached yet)Two things can happen.
1. Bounce off creating a Double bottom with a bullish divergence. Outcome of this scenario will be strong & likely to takeout recent high.
2. Breaching down & invalidate the trade.
Watch levels 1/2/3 for support. Chances are high to fall towards level 3.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.