TECHNICAL BUY

BreadTalk Ltd – Daily timeframe

*Entry Price: 1.645                             Stop loss : 1.470                                   Take profit : 1.800

*BreadTalk Ltd will be added to the Phillip 20 Portfolio once the trade is triggered

Current Sentiment: Bullish

Support 1: 1.525                   Resistance 1: 1.685

Support 2: 1.475                   Resistance 2: 1.800

Price has been moving in a sturdy uptrend since November 2016, but the 1.800 round number halted the bullish momentum. Since hitting the 1.800 round number in August 2017, price has been going through a correction while keeping the uptrend intact. The uptrend will remain valid as long as the 1.475 higher low point holds.

More recently, price continued to consolidate around the 1.525 to 1.580 range. However, the uptrend appears to be gaining strength with the recent bullish breakout. After rebounding off the 1.525 range low on 27/10/17, the bullish follow through on 01/11/17 signalled a bullish price action as it broke above both the 1.580 and 1.615 resistance areas simultaneously. Moreover, the volume in the background is rising significantly.

With the current strong bullish break, the 1.525 range low should act as the next higher low point within this uptrend. Expect the uptrend to resume next for price to test the 1.685 resistance area followed by 1.800.