Technical Buy

ComfortDelGro Ltd – Daily timeframe (Update from 9 May 2018)

*Entry Price: 2.38   Stop loss: 2.09  Take profit: 2.63

*ComfortDelGro has already been added to the “Phillip 20 Portfolio“ since 9 May 2018

Current Sentiment: Bullish

Support 1: 2.19                     Resistance 1: 2.50

Support 2: 2.10                     Resistance 2: 2.63

The uptrend resumed as expected after the last update as price rose to a new 52-week high of 2.51 in early June. However, the 2.50 psychological round number halted the bullish momentum and kickstarted the current correction.

Price fell as much as –12% for this correction, but there seemed to be a resurgence of buyers.       After testing the confluence of support at 2.19 support area, 200 day moving average and 50% Fibonacci Retracement level in late June, price found a base. There was a strong Bullish Engulfing Bar rejection off the 2.19 support area on 26/08/18. The subsequent bullish follow-through also succeeded in breaking and closing above the 20 day moving average and downtrend line on 29/08/18 with increasing suggests further sign of strength.

Expect the uptrend to resume next for price to test the 2.50 resistance area followed by 2.63.

Note: Our current fundamental view on ComfortDelGro is an Accumulate rating with a fair value of $2.69.