Dairy Farm (SGX: D01) has been ranging since March 2020 and although the dominant trend is still on a strong bearish downtrend, the recent technicals suggest that the bulls are here to test higher grounds:

1. The morning star formation at the support zone indicate that the stock’s bullish momentum is returning. To add on, the bullish candle closing above the previous support level at $4.20 tells about how strong the bull is.
2. The Relative Strength index is showing a bullish divergence and the oversold indication below RSI 40.
3. The resistance zone at $4.80 region is a strong attraction for short sellers.

*Timeline of the trade should be between 1-3 weeks from the date issued.

* Should the stock reverse and break below $4.00, the immediate bearish outlook will return.