Following the increase in reserve rate of People Bank of China, all the China bank stocks had big drop in price. Regarding this, I have done an analysis on one of the representatives of those banks: ICBC. First, we could see that due to the announcement, price of ICBC penetrated through the ichimoku cloud, it looks like that the upward trend of ICBC has finally come to an end.
To estimate the coming price change, we could see the below graph. The next supporting point should be at 5.6, and there would be a very great support at 5.4. However, my suggestion is that as long as there is no sign for reverse of trend, we should not long it as it is quite risky.
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