Technical Analysis: Nam Cheong Limited October 14, 2016 15
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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Jeremy Ng
Research Analyst
Phillip Securities Research Pte Ltd
Jeremy specialises in Technical Analysis and has 10 years of experience in studying price action. His areas of expertise include intermarket analysis on the equities, currencies, commodities and bonds market.
He is also a regular columnist on The Business Times - every Monday ChartPoint column.
He graduated with a Bachelor of Science in Banking and Finance from University of London.