Technical Pulse: Dairy Farm International Holdings Ltd May 15, 2020 674

 

Dairy Farm (SGX: D01) has been on a downtrend since January 2019. Based on the technicals, the stock will resume its sell-off after a slight rebound in 23rd of March:

  1. The downtrend is marked by the series of lower highs and lower lows. With prices trending below the major 200 moving average.
  2. The rebound was short-lived when prices broke out of the uptrend line in Mid-April and the stocks have been ranging since.
  3. Although prices attempted to rebound at 4.57, the clusters of Doji and small candles indicate a slow down of momentum.
  4. Triple top formation showing price rejecting the resistance of 5.02 thrice with the third top showing a graveyard Doji, a strong reversal signal.

 

 

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

 

CHART LEGENDS

Moving average

Red dotted line = 200 SMA

Blue dotted line = 50 SMA

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