Technical buy

Hanwell Ltd – Daily timeframe

*Entry Price: 0.345                             Stop loss : 0.295                                   Take profit : 0.390

*Hanwell Ltd will be added to the Phillip 20 Portfolio once the trade is triggered

Current Sentiment: Bullish

Support 1: 0.300                   Resistance 1: 0.360

Support 2: 0.275                   Resistance 2: 0.395

Price has moved into a steady uptrend since February 2017 after it broke above the 0.250 resistance area. Volume has been rising significantly since then showing growing interest.

However, price entered into a period of correction since 15/06/17 after the 0.395 resistance area capped the bullish momentum.

Some sign of recovery appeared recently as the confluence of 200 day moving average and 0.300 support area halted the correction. Moreover, the rebound off the support area succeeded in driving price higher to break above the downtrend line and 20/60 day moving average signals a possible reversal to the upside. In addition, the bullish break above the downtrend line on 12/09/17 was backed by surging volume.

Expect the uptrend to resume next for price to test the 0.360 resistance area followed by 0.395.