Bullish Breakout Expected Amid Wave 3 Rally Potential

11月7日

At Vital Direction, we’re closely monitoring Chongqing Zhifei Biological Products Co., Ltd (ticker: 300122) as we believe it’s poised for a significant upward movement, reflecting our bullish outlook on the broader Chinese stock market. With our technical analysis framework, we interpret this stock as highly undervalued and positioned for potential growth, in line with the index’s bullish trajectory. Currently trading around ¥28, we project that it could ascend to ¥50 or even test new all-time highs, driven by strong technical indicators.

Diving deeper into the wave structure, our analysis indicates that the low around ¥20.38 served as a foundational bottom, marking the beginning of an impulsive pattern. From this level, the sharp increase to approximately ¥40 represents what we interpret as wave 1, while the subsequent correction down to ¥27 aligns with a wave 2. This sets up the present move as the start of wave 3, which we expect to extend much higher in the coming months.

It’s important to note that if the price were to drop back down to the ¥20.38 level, this would invalidate our current bullish scenario. However, as long as this level remains intact, our outlook remains strongly positive. For those following the Chinese market’s developments, this stock could present an opportunity as the market rallies.