Technical Pulse: Healthway Med Ltd April 3, 2018 489

Technical Buy

Healthway Med Ltd – Daily timeframe

3 Apr

*Entry Price: 0.051      Stop loss : 0.043       Take profit : 0.058

Current Sentiment: Bullish

Support 1: 0.049                   Resistance 1: 0.054

Support 2: 0.045                  Resistance 2: 0.058

Since hitting a high of 0.064 in November 2017, price has been moving in a correction. The recent drop below the 0.050 psychological round number resulted in price falling –26% from the 0.064 high since November 2017, but there might be a near-term bottom after five months of being in a correction.

Price fell to an intraday low of 0.047 on 02/04/18 only to be met with strong bullish rejection with price closing at a high of 0.050. As a result, a bullish price action, hammer was formed on 02/04/18 with increasing volume suggests a reversal higher next. Moreover, the hammer also rebounded off the long-term 50% Fibonacci retracement level since December 2016 suggesting a strong support is forming.

Expect the long-term uptrend to resume next for price to test the 0.054 resistance area followed by 0.058.

If the hammer on 02/04/18 fails to hold, the next key support area to watch is the 0.045 – 0.044 area.

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About the author

Profile photo of Jeremy Ng

Jeremy Ng
Research Analyst
Phillip Securities Research Pte Ltd

Jeremy specialises in Technical Analysis and has 10 years of experience in studying price action. His areas of expertise include intermarket analysis on the equities, currencies, commodities and bonds market.

He is also a regular columnist on The Business Times - every Monday ChartPoint column.

He graduated with a Bachelor of Science in Banking and Finance from University of London.

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