Technical Pulse: AsiaPhos Ltd January 4, 2018 764


AsiaPhos Ltd – Daily timeframe


*Entry Price: 0.050                             Stop loss : 0.039                   Take profit : 0.062

Current Sentiment: Bullish

Support 1: 0.040                   Resistance 1: 0.056

Support 2: 0.035                   Resistance 2: 0.062

Price has been falling precipitously since 24/11/17 with significant volume. The selloff got worse after price broke below the 0.080 support area on 28/11/17 where it lasted for the following five weeks.

Due to the heavy selloff, price has also found a new record low at 0.040 where the Relative Strength Index hit an extreme low of 10 suggesting extremely oversold condition. RSI measure momentum and a reading above 70 suggests overbought condition while a reading below 30 suggests oversold condition.

A near-term rebound looks likely after the past two months of aggressive selloff. After testing the 0.040 area on 27/12/17, buyers managed to defend that area resulting in the formation of a hammer. Moreover, for the following few days, the 0.040 area managed to hold up suggesting the formation of the near-term floor at the 0.040 support area. In addition, there was another strong bullish rejection off the 0.040 support area on 03/01/18 with surging volume signals the possibility of a bottom here. Keep in mind the RSI is still extremely oversold at 27.

Expect price to make a rebound higher next to test the 0.056 resistance area followed by 0.062.

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About the author

Profile photo of Jeremy Ng

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.

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