Nam Cheong Ltd – Daily timeframe (Update from 14 July 2016)
Current Sentiment: Bearish
Support 1: 0.060 Resistance 1: 0.080
Support 2: 0.055 Resistance 2: 0.083
Price found a near term bottom after it broke out of the 0.054 range high on 04/10/16 where it went into an abrupt rally. However, the long term downtrend is still dominating price as the 0.080 resistance area readily rejected price, forming a high volume shooting star on 11/10/16. Moreover, the subsequent follow through on 13/10/16 further validates the 11/10/16 shooting star to be a lower high point as it broke a new low.
Expect price to head lower next to test the 0.060 support area followed by 0.550.
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