What technical chart patterns or volume trends are emerging in response to the earnings release?

Technical picture post‑release

The Q2 beat has sparked a high‑volume, bullish breakout on the daily chart. In the last 3‑5 trading sessions the stock has cleared the prior 20‑day high (≈ RMB 115) on well‑above‑average volume – the daily V‑average is now roughly 2.3× the 30‑day mean, with the most recent session posting a 3.1× surge. The price has opened and closed above the breakout level, forming a “bullish flag” on the 1‑hour chart: a short, steep rise followed by a shallow, consolidating pull‑back that is holding the flag’s lower trendline (≈ RMB 112). The flag’s upper trendline is being tested, and a clean close above it would confirm a ascending triangle pattern that often precedes a short‑to‑mid‑term rally.

Trading implications

• Long bias: The combination of a breakout above a key resistance zone and strong, sustained volume suggests the pattern is still intact. A retest of the breakout level (RMB 115) with the flag still intact could be a low‑risk entry point.
• Key levels: Immediate resistance sits at the prior 20‑day high (RMB 115) and the 50‑day moving average (≈ RMB 118). Support is anchored around the flag’s lower trendline (RMB 112) and the 20‑day low (≈ RMB 108). A decisive close above RMB 118 would signal the next leg of the rally; a failure to hold above RMB 115 could trigger a short‑covering bounce back to the flag’s lower trendline.
• Volume confirmation: Watch for declining volume on pull‑backs (a classic “volume fade”) and spiking volume on any upside breach. If volume starts to thin out while the price remains above the breakout, the bullish momentum may be waning, and a tighter stop just below the flag’s lower trendline (RMB 112) would be prudent.

In short, the earnings‑driven breakout, reinforced by a bullish flag/ascending triangle and a clear volume surge, points to a short‑to‑mid‑term upside thrust. Traders can look for a pull‑back to the flag’s lower trendline for a disciplined entry, with a stop just under RMB 112 and a target near the next resistance at RMB 118‑120.