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 second straight session on Thursday, June 26.
Defence and tech sectors led gains for China stocks, which were up for the fourth straight session, as per a Reuters report. Analysts said markets have been soothed by a ceasefire between Israel and Iran that appeared to be holding, reducing the risks of disruptions to the global oil trade.
Meanwhile, Goldman Sachs said in a note on Thursday that they have observed strength across China assets from the trading desks with long-only funds and hedge funds both getting more active.
AVIC Chengdu Aircraft share price trend
The CSI Defence Index rallied 1.9%, with AVIC Chengdu Aircraft share price gaining in intraday deals today. AVIC Chengdu Aircraft shares rose as much as 3.2% to the day’s high of 84.11 yuan. The stock had risen 1.5% in the previous trade, taking the two-day gain to 4.7%. The rally follows an over 5% loss 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.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
