Israel-Iran ceasefire: AVIC Chengdu share price rises for third straight session. More steam ahead?

AVIC Chengdu share price: Amid the Israel-Iran ceasefire and overall positive sentiments in the Chinese equity markets, shares of AVIC Chengdu Aircraft, the maker of the J-10 fighter jets, rose for the third straight session on Friday, June 27.

China stocks were little changed on Friday but were set to notch their biggest weekly gain in more than seven months, led by financial shares, as a ceasefire between Israel and Iran lifted investor sentiment, according to a Reuters report.

Over a 6- to 12-month horizon, increased portfolio allocation to China appears likely, supported by improving market fundamentals and growing global investor demand for diversification, according to Morgan Stanley analysts.

AVIC Chengdu Aircraft share price trend

AVIC Chengdu Aircraft shares rose as much as 1.6% to the day's high of 83.45 yuan. In the last three days, the stock has risen almost 4%. The rally follows an over 5% loss seen on Tuesday.

For the month, AVIC Chengdu Aircraft shares have risen over 7%, building on nearly 31% gains recorded in May. The rally last month followed four months of back-to-back losses.

The Chinese defence stock has been in focus since May, following the India-Pakistan conflict wherein the latter's air force deployed the J-10 fighter jets against India, albeit unsuccessfully.

AVIC Chengdu Aircraft share price outlook

Anshul Jain, Head of Research at Lakshmishree Investments, said AVIC Chengdu broke out of an 18-day cup and handle pattern, part of a larger flag formation, triggering a bullish signal at 86 yuan per share.

“The stock must hold above the key support zone at 79 yuan apiece for the breakout to sustain. A swift move toward 105 yuan per share is highly likely if this level holds. The broader structure indicates consolidation within strength, and any volume expansion will further support the bullish continuation,” Jain added.

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