Technical Buy

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

*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.