ComfortDelGro Ltd – Daily timeframe (Update from 19 April 2017)
*Entry Price: 2.13 Stop loss : 1.950 Take profit : 2.37
*ComfortDelGro Ltd will be added to the Phillip 20 Portfolio once the trade is triggered
Current Sentiment: Bullish
Support 1: 2.000 Resistance 1: 2.21
Support 2: 1.955 Resistance 2: 2.37
Price started falling sharply after testing the 2.78 resistance area as mentioned in the previous update. Moreover, the bearish momentum accelerated after price broke below the 2.390 double bottom area since June 2017.
However, after five months of bearish price action, price seemed to have found a near-term bottom near the 2.00 psychological round number. Price first tested the 2.00 round number on 19/09/17. Since then, it has been ranging between the 1.965 range low and 2.09 range high. The current Bullish Engulfing Bar rejection off the 2.00 psychological round number on 13/11/17 signals a reversal to the upside. In addition, the bullish bar also broke price above the 20 and 60 day moving average simultaneously with increasing volume suggests a growing bullish momentum.
Expect price to make a rebound higher next as the 2.00 psychological support area keeps a floor on price. For this upleg, buyers should be targeting the 2.21 resistance area next followed by 2.37.
Note: Our current fundamental view on ComfortDelGro is a Buy rating with a fair value of $2.69.
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