Valuetronics Holdings Ltd(Current Price: 0.52) – Technical Buy

Buy spot: 0.52      Stop loss: 0.48    Take profit: 0.60

Valuetronics Holdings (SGX: BN2) strong sell-off has seen some light at the end of the tunnel after price rebounded from the low of 0.425 on 19^th March 2020 and it is likely to continue based on the technicals below. However, the rebound is seen as a correction rather than a reversal as the dominant impulse trend is still on the downside:

1. Bullish engulfing candle at 38.2% retracement of 0.530-0.435.
2. Price action suggest that the stock is forming a potential bearish flag.
3. The selling supply level confluence with the 161.8% extension level of 0.530-0.435. A very strong attraction for sellers to sell at a higher price.

*Timeline of the trade should be between 1-3 weeks from the date issued.

* The dominant trend is still strong bearish as the death cross between 50 and 200 SMA is the strong reason. Therefore, this trade is a short term trade taking advantage of the counter trend trade.