Technical Pulse: Bukit Sembawang Ltd October 16, 2017 987

Technical buy

Bukit Sembawang Ltd – Daily timeframe

16 oct

*Entry Price: 6.58                    Stop loss : 6.15                                       Take profit : 6.90

Current Sentiment: Bullish

Support 1: 6.30                     Resistance 1: 6.79

Support 2: 6.16                     Resistance 2: 6.90

Price has been moving in a dominant uptrend since January 2017 as it hit a high of 6.93. After testing the 6.90 psychological resistance area on 18/07/17, price began to correct gently while keeping the uptrend intact.

The confluence of support at 6.20 resistance turned support area and the combination of 61.8% and 23.8% Fibonacci retracement level halted the correction perfectly on 02/10/17 with a hammer rejection. Moreover, the volume has been picking up significantly in the background since then showing a growing interest.

The forceful bullish follow on 13/10/17 succeeded in breaking price above the 20, 60 day moving average and 6.41 range high with surging volume signals the resumption of the uptrend next.

Expect price to rise next to test the 6.80 resistance area followed by 6.90.

16 octt

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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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