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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