Hi-P Ltd – Daily timeframe
*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.