Trade of the Day – LHN Ltd (SGX: 41O) January 25, 2024 120

Trade of the Day

LHN Ltd (SGX: 41O)

(Current Price: S$0.345) – TECHNICAL BUY

Buy stop: S$0.350     Stop loss: S$0.330 (-5.71%)    

Take profit 1: S$0.375 (+7.14%)     Take profit 2: S$0.395 (+12.86%)          

 

 

(1) & (2): LHN Ltd has been consolidating in a bullish inverse head & shoulders pattern since August 2023, and could potentially breakout of the neckline resistance at S$0.345

(3): The Moving Average Convergence Divergence (MACD) technical indicator is also displaying an increasing momentum trend

We believe should the price break out of its current consolidation, it could head towards the first resistance level at S$0.375 to retest a previous range support breakdown in July 2023. It could then head higher towards the second resistance level at S$0.395, a retest of the previous horizontal range resistance in July 2023 which is also confluent with the projected target of the inverse head & shoulders breakout

Expected timeline of the trade is 1-12 weeks from the date of report issuance

Our research team has a fundamental recommendation of “BUY” with a target price of S$0.390

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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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