Otsuka Holdings - Uptrend continuation TSE:4578 is looking at a strong bullish continuation to the upside after the stock has broken above the downward sloping line of the descending triangle. Besides that, the cup and handle formation has been completed. Besides that, we believe the larger corrective structure is coming to an end after a smaller rounding bottom was spotted at the base of teh major support at 6227 regions.
Indicators:
The long-term MACD is indicating a continuation to the upside as histogram is positive.
Stochastic Oscillator is seen rising above the overbought 20-line.
23-period ROC is positive and continues to rise. The directional movement index indicates strong bullish strength.
Volume remains in a healthy expansion.
Strategy:
Buy spot at 7,207 or at pullback at 6,605. Target is at 8,078 and 11,000 (Long-term)
