Technical Pulse: Haw Par Corp Ltd June 4, 2021 246
Haw Par Corp Ltd (SGX: H02) Strong upside is set to continue once again as recent technical supports the continue bullish view:
Haw Par had a sharp decline from $13.70 to $12.50 in the month of April 2021 and it even broke below the uptrend line. However, the rebound is much stronger which the correction was weak that it has formed a bullish flag, which is a bullish continuation pattern.
The rounding bottom and the bullish flag can be considered as a cup and handle formation. Furthermore, the clusters of candles at the resistance zone looks more of a correction looking to breakup.
The Bearish engulfing candle on 31st May was invalidated by an inside bar and although there was a sell down on 2nd June 2021, the bullish inside bar on the 3rd invalidated it with a false sell. Which can be classified as a failed bearish Hikkake pattern.
Prices are still trending strongly above all three major moving averages.
*Timeline of the trade is 8 weeks from the date issued.
About the author
Chua Wei Ren Technical Analyst Phillip Securities Research Pte Ltd
Wei Ren specialises in Technical Analysis and has 11 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory. He believes that history plays an important role in how the market is reflected in the future.