HMI Ltd – Daily timeframe (Update from 23 May 2017)
*Entry Price: 0.705 Stop loss : 0.585 Take profit : 0.800
Current Sentiment: Bullish
Support 1: 0.610 Resistance 1: 0.730
Support 2: 0.595 Resistance 2: 0.755
A significant bullish breakout finally occurred on 05/06/17 after another period of consolidation around the 20 and 60 day moving average. After the last update, price went into a consolidation for the following 9 days before the breakout happened.
Buyers have essentially broken out of the triangle since November 2016 and 0.680 key resistance area on 05/06/17 with surging volume signals the end of the prolonged correction. Price should continue to move inline with previous reports.
Expect the uptrend to resume next for price to test the 0.755 resistance area followed by 0.800.
Note: Our current fundamental view on HMI is a Buy rating with a fair value of $0.830.
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