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.