Trade of the Day – Best World International Ltd (SGX: CGN) May 26, 2023 381

Trade of the Day

Best World International Ltd (SGX: CGN)

(Current Price: S$1.84) – TECHNICAL BUY

Buy price: S$1.84     Stop loss: S$1.80     Take profit 1: S$2.01

Take profit 2: S$2.14

 

 

The price found support upon retest of the downtrend channel support with confluence of a previous resistance turned support retest at S$1.82 on 25th May. Both Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) technical indicators are also displaying bullish momentum, where higher lows were formed when price made a lower low into the support.

The price could head to the first resistance level at S$2.01, which is confluent with the recent swing high resistance formed in mid-May.

It could then head to the next resistance level at S$2.14, which was a previous horizontal support in March, now turned resistance following a breakdown.

Expected timeline of the trade is 4-8 weeks from the date of report issuance.

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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