HMI Ltd – Daily timeframe (Update from 6 June 2017)
*Entry Price: 0.690 Stop loss : 0.635 Take profit : 0.755
*HMI Ltd will be added into the Phillip 20 Portfolio once the trade is triggered
Current Sentiment: Bullish
Support 1: 0.645 Resistance 1: 0.730
Support 2: 0.610 Resistance 2: 0.755
Price rose marginally after the last update and started to dwindle into a correction after the 0.730 resistance area capped price down. The correction continued for the subsequent 5 weeks before finding a higher low point on 13/07/17, keeping the uptrend intact.
There was a strong bullish rejection off the 20/60 day moving average, 61.8% Fibonacci retracement level and 0.645 support area resulting in price breaking above pullback line and 20 days moving average on 14/07/17 signals the uptrend is ready to take over again. Moreover, the 14/07/17 bullish break was also backed by increasing volume.
Expect price to head higher next to test the 0.730 resistance area followed by 0.755.
Note: Our current fundamental view on HMI is a Buy rating with a fair value of $0.83
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