Technical Pulse: Hi-P Ltd April 11, 2018

Technical Buy

Hi-P Ltd – Daily timeframe

11 Apr

*Entry Price: 2.15      Stop loss : 1.78       Take profit : 2.65

*Hi-P Ltd will be added to the Phillip 20 Portfolio once the trade is triggered

Current Sentiment: Bullish

Support 1: 1.86                     Resistance 1: 2.38

Support 2: 1.79                     Resistance 2: 2.65

Since hitting a record high of 2.79 in March, price has been moving in a correction phase. Nonetheless, the long-term uptrend remains intact as the Higher Low (HL) point at 1.79 in February held up.

With the recent –33% selloff from the March peak, the Relative Strength Index (RSI) has also dipped into the oversold condition lately on 04/04/18 as it hit a low of 28 suggesting for a rebound soon. Moreover, after the RSI fell to a low of 28, price also found some support around the 61.8% Fibonacci retracement level and 1.86 support area. The recent rebound higher especially on 10/04/18 succeeded in lifting the RSI back above the 30 oversold region signals the start of the mean reversion back into the uptrend. Furthermore, volume has been rising lately showing a growing interest.

With the recent bullish price action, expect price to head back into the uptrend next to retest the 2.38 resistance area followed by 2.65.

Comments

Be the First to Comment!

avatar
  Subscribe  
Notify of

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.

Get access to all the latest market news, reports, technical analysis
by signing up for a free account today!