China Life Insurance (2628.HK) Breaks above the Falling Wedge
Medion Jim October 19, 2020 10:20 PM
An interesting pattern found in the chart. How far will the stock climb?
China Life Insurance (2628), a major Chinese insurance company, reported that gross premium income climbed 9.4% on year to 543.6 billion yuan in the January-September period.
China Merchants Securities estimated that China Life Insurance might benefit from rising government bond yield and a positive equity in 3Q 2020.
From a technical point of view, the stock confirmed a bullish breakout of falling wedge pattern, suggesting a continuation of the previous up trend. Currently, the prices break above both 20-day and 50-day moving averages. The RSI also crosses above the declining trend line drawn from July.
Bullish readers could set the support level at HK$17.00, while resistance levels would be located at HK$20.50 and HK$21.90 respectively.
Source: GAIN Capital, TradingView
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