TECHNICAL BUY

InnoTek Ltd – Daily timeframe (Update from 2 May 2017)

*Entry Price: 0.345                  Stop loss : 0.270                                     Take profit : 0.420

Current Sentiment: Bullish

Support 1: 0.300                   Resistance 1: 0.375

Support 2: 0.275                   Resistance 2: 0.420

Price rose as expected after the last update but fell short of testing the 0.450 psychological resistance area. After having multiple extreme volume spikes around the 0.400 to 0.450 area in June, price formed a near-term top on 09/06/17. During the correction phase, price fell hard to a low of 0.275 in September, but the sharp reversal since 29/09/17 kept the long-term uptrend intact. Furthermore, the bullish reversal happened near the long-term 50% Fibonacci retracement level making the 0.275 area a strong base.

The bottoming process since 29/09/17 has also formed an inverted head and shoulders pattern with 0.310 acting as the neckline. Further sign of strength was confirmed on 06/11/17 after the surging volume bullish bar broke price above the 0.275 neckline and 20/60 day moving average simultaneously.

Expect the current bullish momentum to sustain with the recent inverted head and shoulders pattern breakout. The 0.275 low from 29/09/17 should act as the next higher low point within this uptrend. Buyers should be targeting for the 0.375 resistance area next followed by 0.420.