Chip Eng Seng Ltd – Daily timeframe (Update from 21 March 2018)
*Entry Price: 1.02 Stop loss : 0.880 Take profit : 1.10
*Chip Eng Seng has been added to the “Phillip 20 Portfolio“ since 12 December 2017
Current Sentiment: Bullish
Support 1: 0.920 Resistance 1: 1.040
Support 2: 0.885 Resistance 2: 1.070
The bullish momentum sustained as expected after the last update and the uptrend appears to be going strong. After breaking above the 1.00 psychological round number on 27/03/18, price wobbled back down while keeping the uptrend intact.
With the bullish break above the 1.00 psychological round number, the 20 day moving average has also crossed back above the 60 day moving average which is a positive sign for the uptrend. Moreover, the recent bullish follow through especially the bullish break on 13/04/18 succeeded in closing price above the 1.00 psychological round number and pullback line signals the start of the next wave higher. In addition, the bullish break was also backed by increasing volume.
Expect the uptrend to continue for price to test the 1.040 resistance area followed by 1.070.
Note: Our current fundamental view on Chip Eng Seng is a Buy rating with a fair value of $1.21.