Above is the daily chart of ICBC (1398.HK). After the crazy plunge of the market in previous weeks, the price of the bank dropped below 6.0 till as low as 5.88.
The green support up-trend line beautifully supported the price at 5.88 level and gave it some power to rebounce. However, it is currently testing a resistant level: 50%-level. There was bearish rejection yesterday, showing the selling power was higher than the buying one.
But MACD and EMA were touching with each other, there is possibility for a bullish cross to appear and it might lead the price to break the 50% level and gain higher.
Next resistant levels are 6.20 and then around 6.75. If the price could stay above 6.0 today, we could buy some shares of it. Then when it further breaks 6.20, we should add in and wait until around 6.75.
If the price breaks the support line instead, heading downwards and falling below 5.9, it is likely that it would drop until 5.60 before having any support.
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