Sinovac Biotech Ltd (SVA) : Consolidation with potential breakout

SVA has been trading on a tight range since it gap down around Jan 26.

From the Ichimoku chart, we can see that it is trading in a tight narrow range attempting to fill its previous gap resistance at around $6.93

Both the Tenkan sen and Kijun sen is starting to point upwards; a validation that the ascending triangle is forming.

No strong bull trend or swing trade has developed yet as we can see the leading kumo is flat and the Tenkan sen and Kijun slopes are not very steep.

With both the Tenkan sen and Kijun sen so near each other, it is starting to provide a much stronger support for SVA.

A breakout above $6.93 will see a target price of $7.52 (resistance at the next Chikou Span point).

By iam802

Trend trading with Ichimoku