Technical Pulse: Capital World Ltd November 3, 2017 886
TECHNICAL BUY
Capital World Ltd – Daily timeframe
*Entry Price: 0.088Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Stop loss : 0.070Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Take profit : 0.115
Current Sentiment: Bullish
Support 1: 0.073Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Resistance 1: 0.094
Support 2: 0.071 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Resistance 2: 0.115
Since May 2017, price has been falling precipitously in a downtrend without much support. However, the current bullish price action might be signalling the formation of a near-term bottom soon.
Price has been consolidating between the 0.081 range high and 0.073 range low more recently since October as the volume picked up significantly showing a growing interest. Moreover, a bullish breakout above the 0.082 range high finally occurred on 02/11/17 suggests a reversal higher next. In addition, the bullish break was also backed by surging volume.
If the bullish momentum sustains, the 0.071 low on 23/10/17 could very well be the near term bottom. Expect price to bounce higher next to test the 0.094 resistance area followed by 0.115.
Join our telegram channel on technical analysis for trends, entry and exit prices over Stocks, ETFs, and Indices!
Featuring regular TA posts and requests to analyse specific stocksAbout the author
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.