YangZiJiang – Bull flag sighted

Trend: Uptrend, 20ma up, Macd above 0

Support: 1.38 (20ma), 1.32 (50ma)

Resistance: 1.46, 1.57

Observations
Candlestick – White candle.
Histogram – 4R. No Bearish divergence is seen.
RSI – Just entered overbought. No Bearish divergence is seen.
Stochastic –Bullish cross could be seen.
Bollinger Band – In between upper and mid band.

Conclusion:
Yangzijiang has been trending healthy after it had breakout at 1.38 level where it has confirmed its uptrend movement. Will it carry on its uptrend movement to test this year’s high?
Looking at the chart, YZJ is a very obvious uptrend stock as its price is trading above all the moving averages. Recently, this upward movement starts to form a flag formation which could mean that the price is still bullish. In order to confirm the flag formation, it must break 1.46 resistance. Based on the price objective of the flag, the objective level is similar to the next resistance level of 1.57. Hence, if YZJ is to break 1.46, higher high could be seen at 1.57 level.
Currently, the indicators has yet to form any bullish signals but the candlestick and RSI shows strength and could have bullish signals soon. If the flag fails to confirm, YZJ might retrace towards 20ma as support which is currently at 1.38 level which confluence with horizontal support level.
In conclusion, YZJ still remain bullish without signs of weakness. To confirm its further upside, it must break 1.46 level. Its downside is currently capped at 1.38 support level.
What to watch out for this week:
1) Breakout of 1.46 resistance with high volume
2) Retracement to 1.38 support level.

Trading strategy to adapt right now:
- Long when there is breakout of 1.46 level with high volume.
- Wait for retracement to 1.38 support.

*Disclaimer applies