Technical Pulse: Japfa Ltd January 13, 2021 293

Japfa Ltd (SGX: UD2) sell call on 13th November 2020 has achieved its first target at $0.750 which subsequently rebounded with a strong rally and in the process confirming the impulse move. Further technical suggest that the stock will continue its bullish rally:

  1. Since the rebound at $0.750. The stock has confirmed the impulse wave (3) of the intermediate phase and it is still ongoing as suggested by the sub-wave (i)-(v) for the first set.
  2. Bullish breakout of the flag indicates further continuation. To add on, the bullish candle resembles a morning star in the making.
  3. Ichimoku’s “Sanyaku Kouten” is still valid as prices is still trending above all 5 key Ichimoku indicators. Furthermore, the bullish candle has broken above the Tenkan-Sen on Tuesday.

 

*Timeline of the trade is 4 weeks from the date issued.

 

CHART LEGENDS

Ichimoku Kinko Hyo

Red dotted line = 9 Periods Tenkan-Sen

Blue dotted line = 26 periods Kijun-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line

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Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 9 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory and Supply & Demand strategies as he believes that history plays an important role in how the market is reflected in the future.

He graduated with a Bachelor of Economics and Finance from University of Murdoch.

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