Technical Pulse: Hi-P International Ltd July 9, 2019

Support 1: 1.12                       Resistance 1: 1.48

Support 2: 0.83                       Resistance 2: 1.81

Although Hi-P is facing a huge bearish sentiment, the stock still has some potential to grow stronger in the future. Based on the technicals, the stock may face further correction as the RSI bearish divergence is taking into effect. Additionally, the price has broken out of the rising wedge, and this means that the stock is heading for further downside pressure.

However, the bearish momentum may be short-lived as there is a strong area of demand at the 61.8% of the Fibonacci retracement level from 0.830-1.810 swing high/low. Also, the 61.8% level confluence with the support at 1.18-1.20 area, which is also the immediate high of November 2018. Therefore, buyers should be hunting at those levels.

 

*Should the stock breaks below the price level of support level 1 at 1.12; the next expected rebound area will most likely at 0.99.

 

CHART LEGENDS

Red line = 200 periods moving average

Blue line = 50 periods moving average

Green line  = 22 periods moving average

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Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 9 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory and Supply & Demand strategies as he believes that history plays an important role in how the market is reflected in the future.

He graduated with a Bachelor of Economics and Finance from University of Murdoch.

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