China Eastern Airlines Corporation Limited, also known as China Eastern, is an airline headquartered in the China Eastern Airlines Building, on the grounds of Shanghai Hongqiao International Airport in Changning District, Shanghai.
#CEA from the bottom of March has been trading on this strong upward channel and as we know, history tend to repeat itself.
After the fall started on 4th December 2020, we believe that the reversal candle reported on the 15th of January could be a good indicator of a trend reversing to the upside.
The stock is overall in bullish context, giving the channel from March 2020
- the MACD is sloping up and approaching 0
- the RSI is low, signalling that there is room for a move to the upside
We believe a first resistance level will be at the middle of the upward channel, once surpassed the stock may easily reach the $23.50 as previously done
Entry price $ 21.34
1st Target $ 22.30
2nd Target $ 23.50
Stop loss $ 20.00
OTB Global Investments
London, 20 January 2021