Technical Buy

Healthway Med Ltd – Daily timeframe

*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.