ICBC Escaped from Declining Channel
Medion Jim April 29, 2020 6:16 AM
ICBC (1398), a top Chinese bank, announced that 1Q net income grew 3.0% on year to 84.49 billion yuan.......
ICBC (1398), a top Chinese bank, announced that 1Q net income grew 3.0% on year to 84.49 billion yuan and operating income increased 2.2% to 206.19 billion yuan on net interest income of 154.29 billion yuan, up 2.2%. Also, core tier 1 capital adequacy ratio was broadly steady at 13.15%, compared with end-2019, and non-performing loan ratio was unchanged at 1.43%.
From a technical point of view, the stock posted a rebound from $4.81 after touching the lower line of the declining channel and the low of August 2019) on the daily chart. After that, the prices have escaped from the declining channel drawn from January top. It indicates that the outlook of the stock would turn to positive. A break above $5.31 (38.2% retracement between January top and March low) should enhance the bullish bias.
In addition, the RSI also posted a bullish divergence signal, when the stock made a bottom at $4.81. In addition, the RSI also broke above the declining trend line drawn from November. It suggests that the momentum of the stock is turning upward.
In this case, as long as the previous low at $5.01 is not broken, the stock could consider a challenge to the resistance level at $5.61 (61.8% retracement and reaction high at February 17). A break above this level would trigger a further advance to the overlapping resistance level at $5.81.
Source: GAIN Capital, TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.