Trade of the Day – Frencken Group Ltd (SGX: E28) May 24, 2024 129

Trade of the Day

Frencken Group Ltd (SGX: E28)

(Current Price: S$1.47) – TECHNICAL BUY

Buy price: S$1.47    Stop loss: S$1.39 (-5.44%)    

Take profit 1: S$1.58 (+7.48%)    Take profit 2: S$1.66 (+12.93%)    

 

 

 

 

(1) & (2): Frencken Group Ltd broke out of a downtrend channel after finding support at a higher low price level of S$1.36. This provides a bullish reversal signal.

(3): The Moving Average Convergence Divergence (MACD) & Relative Strength Index (RSI) technical indicators support the bullish view with bullish divergence signals and increasing momentum thereafter.

We expect the price to continue trending higher towards Take profit level 1 at S$1.58 to retest a previous range support breakdown level, now acting as resistance, in early-April 2024.

The price could then trade higher towards Take profit level 2 at S$1.66 to retest the previous range resistance level formed in late-March 2024.

Expected timeline of the trade is 1-8 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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