Support 1: 14.00                     Resistance 1: 14.63

Support 2: 12.80

Haw Par has rallied up and covered its gap down that happen last week. Although the sentiment remains bullish, the market failed to break the high of 14.62 yesterday. The main reason is that the market is exiting with the bullish profits and thus send the market into lower tail wind. We believe that the market may find itself correcting into the demand zone at 13.93-14.00. Based on the following technical factors, we have strong reason to believe that Haw par will rebound at the demand zone.

• Strong area of demand confluence with 38.2% of the Fibonacci retracement, a traditional area which price will have huge movement after a corrective dip.
• Bullish trend line is still intact and in fact, the gap down last week was met with rejection right at the trend line.
• Strong confluence of the 22 period moving average in sync with the middle band of the Bollinger Bands.
• All 3 moving averages are showing an upward movement.

*Should the market traded below the uptrend line for 5 consecutive days, there might be a possibilities that the market will fall even lower. 

CHART LEGENDS

Red line = 200 period moving average, Blue line = 50 period moving average, Green line  = 22 period moving average