Technical Analysis: Valuetronics Holdings Ltd April 3, 2020 768

Valuetronics Holdings Ltd(Current Price: 0.52) – Technical Buy

Buy spot: 0.52      Stop loss: 0.48    Take profit: 0.60

Valuetronics Holdings (SGX: BN2) strong sell-off has seen some light at the end of the tunnel after price rebounded from the low of 0.425 on 19th March 2020 and it is likely to continue based on the technicals below. However, the rebound is seen as a correction rather than a reversal as the dominant impulse trend is still on the downside:

  1. Bullish engulfing candle at 38.2% retracement of 0.530-0.435.
  2. Price action suggest that the stock is forming a potential bearish flag.
  3. The selling supply level confluence with the 161.8% extension level of 0.530-0.435. A very strong attraction for sellers to sell at a higher price.

 

*Timeline of the trade should be between 1-3 weeks from the date issued.

* The dominant trend is still strong bearish as the death cross between 50 and 200 SMA is the strong reason. Therefore, this trade is a short term trade taking advantage of the counter trend trade.

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