Technical Pulse: SATS Ltd October 6, 2021 494

SATS Ltd (US: S58) May’s rebound has not break and stays above the psychological resistance of $4.00 for 3 months. Yet the multiple testing has weakened the resistance zone of $4.20-$4.29 in the process with each shortfall displayed with higher lows. As such, technical has shown clear potential return of the bull:   

 

  1. The formation of the ascending triangle indicate a higher chance of breaking especially the resistance has been weakened by multiple testing.
  2. Within the ascending triangle, the rounding bottom which forms the cup and handle formation is likely confirmed after Tuesday’s bullish candle has close above the flag/handle and also the 61.8% Fibonacci retracement level of $4.58-$3.55.
  3. Ichimoku has shown three signs of bullish signal after the Tenkan-Sen has crosses above the Kijun-sen, Chikou-Span returning above the candles and both the Senkou-Span A, B sloping up aggressively.
  4. Should price fails to break, the support zone at $3.86-$3.92 offers a potential rebound.

 

*Expected timeline of the trade is 5 weeks from the date of report issuance.

 

CHART LEGEND

 

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line

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