Technical buy

Bukit Sembawang Ltd – Daily timeframe

*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.