Technical Pulse: Cogent Ltd July 24, 2017 339

Technical Buy

Cogent Ltd – Daily timeframe (Update from 22 March 2017)

24 jul

*Entry Price: 0.810                Stop loss : 0.725                Take profit : 0.900

Current Sentiment: Bullish

Support 1: 0.730                   Resistance 1: 0.835

Support 2: 0.705                   Resistance 2: 0.880

The uptrend moved along as expected after the last update but fell short of testing the 0.880 resistance area as the 0.860 area kept a lid on price.

Since testing the 0.860 area on 10/04/17, price entered into a prolonged period of correction while keeping the uptrend intact as the confluence of 38.2% Fibonacci retracement level, 200 day moving average and 0.730 support area halted the bearish momentum. As a result, price succeeded in reversing the correction shown by the increasing volume bullish break above the downtrend line on 21/07/17.

Moreover, the bullish rejection off the 0.860 support area is forming a bullish double bottom pattern.

Expect the long term uptrend to resume next for price to test the 0.835 resistance area followed by 0.880.

Note: Our current fundamental view on Cogent is a Buy rating with a fair value of $1.18.

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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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