Technical Pulse: BreadTalk Ltd September 21, 2018

Technical Long

BreadTalk Ltd – Daily timeframe (Update from 2 November 2017)

*Entry Price: 1.00      Stop loss: 0.895    Take profit: 1.08

*BreadTalk has already been added to the “Phillip 20 Portfolio“ since 2 November 2017

Current Sentiment: Bullish

Support 1: 0.940                   Resistance 1: 1.05

Support 2: 0.905                   Resistance 2: 1.08

Since hitting a record high of 1.26 in July, price has fallen into a deep correction. In total, price fell -25% from the 1.26 high to the recent low of 0.940. Nonetheless, the long-term uptrend remains intact as suggested by the price action around the 200-day moving average.

The 200-day moving average was once again tested in early September. Despite price breaking below it, the bearish follow through was rather weak. Instead, there was an increasing volume bullish rejection off the 200 day moving average on 20/09/18 suggests a rebound higher next. Moreover, the bullish rejection also succeeded in breaking above the 0.980 immediate range high shows further sign of strength.

Notice how the 200-day moving average successfully halted the stark selloff in May. As soon as price tested the 200-day moving average on 04/05/18, price quickly reversed back into the long-term uptrend sharply.

Thus, with the current bullish rejection off the 200-day moving average, expect the long-term uptrend to resume for price to test the 1.05 resistance area followed by 1.08.

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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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