Global markets today: J-10 fighter jet maker AVIC Chengdu share price surges 9% in five days after Israel-Iran ceasefire

Avic Chengdu Aircraft share price: The shares of J-10 fighter jet maker — AVIC Chengdu Aircraft — have rallied nearly 9% in the past five sessions, buoyed by the Iran-Israel ceasefire and rally in Chinese defence stocks.

While the Chinese stock have been trading on a firm note for the past few days, mainland stocks were roughly flat in the first half of the year, as Chinese investors are piling into Hong Kong shares, lured by lower valuations and the city's strategic position in China's growing rivalry with the United States, according to a Reuters report.

AVIC Chengdu Aircraft share price trend

AVIC Chengdu Aircraft shares have rallied from 80.30 yuan on June 24 to 87.51 yuan today, July 1. The Chinese defence stock took a breather in trade after a four-day rally. 

The J-10 fighter jet maker's stock has been in an uptrend following the Iran-Israel ceasefire last week, barring today. The stock has added almost 9% in the last five sessions. AVIC Chengdu Aircraft's stock ended June on a firm note, with an over 14% rise after a whopping 31% surge in May.

The stock caught investor attention after the India-Pakistan conflict. The Pakistan Air Force deployed the J-10 fighter jet against India, although it failed to make an impact against India's military prowess.

AVIC Chengdu Stock: Technical outlook

Anshul Jain, Head of Research at Lakshmishree Investments, expects the Chinese defence stock AVIC Chengdu to hit new highs on a breakout above 89 yuan.

“AVIC Chengdu on the weekly chart is forming a 28-day-long rounding bottom pattern and is poised for a bullish breakout if it closes above 89. A sustained close above this level could push the stock towards an immediate target of 104 in the coming weeks,” the analyst said.

Jain, however, added that volumes so far have been slightly lacklustre, making it important to watch for a breakout supported by strong, above-average volumes to build conviction. If that happens, fresh longs can be confidently accumulated for further upside with a favourable risk-reward setup, he opined.

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