Geely Automobile ( Classic Bullish Pattern

Rocket taking off on a bright day
Geely Automobile (, a Chinese vehicle manufacturer whose share price has been lagging behind its peers BYD, has surged more than 20% so far this week.

Earlier this week, the Chinese government announced plans to target 20% ratio of new energy vehicle to total vehicle sales by 2025 and to provide financial support for building electric vehicle charging piles.

Meanwhile, Citigroup raised Geely Automobile's and its high-end LK brand vehicle sales volume forecast to 1.60 million units, or 23% growth year-on-year, and lifted the stock's target price to $41 from $30 previously.

From a technical point of view, Geely Automobile's ( upside momentum remains strong as shown on the daily chart. It has broken above a classical bullish cup and handle pattern, and has just surpassed July's high. The level at $17.00 might be considered as the nearest support, while the 1st and 2nd resistance are expected to be located at $22.00 and $25.00 respectively.

Source: GAIN Capital, TradingView

Related tags: Equities Stocks China

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