Technical Pulse: HMI Ltd July 17, 2017 218

Technical Buy

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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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.

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