ComfortDelGro Ltd (SGX: C52) Sell-call on 11th February was met with a loss after prices fails for break below the $1.56 support. Prices then proceed with a strong bullish upside by breaking the then resistance zone at $1.62-$1.64. Technical shows further potential upside:
- Since the rally after breaking the then resistance zone at $1.62-$1.64, prices have been testing the next resistance zone at $1.67-$1.71, which there was a slight bearish signal. However, the consolidation candles indicate a weaker bear, and it may signal a short fall. Furthermore, the consolidation has formed a smaller pennant formation, which a break to the upside will confirms the bull.
- The larger bullish flag indicates a bullish continuation.
- Moving back to mid-Jan, prices have successfully close above the 50% Fibonacci retracement and the 38.2% retracement thereafter.
- Prices has been trending above all three major moving averages and the golden cross is still intact.
*Timeline of the trade is 4 weeks from the date issued.
*Should prices fail to break above $1.70, chances are prices will rebound once more at the 39.2% Fibonacci retracement level.
CHART LEGENDS
Ichimoku Kinko Hyo
Red dotted line = 200 Periods Moving average
Blue dotted line = 50 Periods Moving average
Green Line B= 22 Periods Moving average