Trade of the Day – ST Engineering Ltd (SGX: S63) December 6, 2023 300

Trade of the Day

ST Engineering Ltd (SGX: S63)

(Current Price: S$3.70) – TECHNICAL SELL

Sell stop: S$3.68     Stop loss: S$3.78 (-2.72%)    

Take profit 1: S$3.46 (+5.98%)     Take profit 2: S$3.33 (+9.51%)

 

 

(1) & (2): ST Engineering Ltd has been facing downside pressure from a downtrend resistance line and it broke down the main uptrend channel it was trading in since October last year, which provides a bearish signal

(3): Both Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) technical indicators are displaying decreasing momentum since the price pulled back from the main uptrend channel resistance

(4): Should the price continue its bearish momentum, we believe it could potentially retest the first support level at S$3.46, which is confluent with the horizontal support level across April to July. It could then head towards the second support level at S$3.33 thereafter. These target levels are also confluent with the 50% & 61.8% Fibonacci retracement levels, using the swing high of S$3.94 and swing low of S$2.95.

Expected timeline of the trade is 2-12 weeks from the date of report issuance

 

Our research team has a fundamental recommendation of “BUY” with a target price of S$4.50

 

 

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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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