China Life Insurance (2628.HK) Breaks above the Falling Wedge

An interesting pattern found in the chart. How far will the stock climb?

Stocks (1)

China Life Insurance (2628), a major Chinese insurance company, reported that gross premium income climbed 9.4% on year to 543.6 billion yuan in the January-September period.

China Merchants Securities estimated that China Life Insurance might benefit from rising government bond yield and a positive equity in 3Q 2020.

From a technical point of view, the stock confirmed a bullish breakout of falling wedge pattern, suggesting a continuation of the previous up trend. Currently, the prices break above both 20-day and 50-day moving averages. The RSI also crosses above the declining trend line drawn from July.

Bullish readers could set the support level at HK$17.00, while resistance levels would be located at HK$20.50 and HK$21.90 respectively.

Source: GAIN Capital, TradingView

More from Equities

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.