Technical Pulse: Jardine C&C Ltd May 14, 2018

Technical Buy

Jardine C&C Ltd – Weekly timeframe

*Entry Price: 34.20        Stop loss : 31.59     Take profit : 38.00

*Jardine C&C Ltd will be added to the Phillip 20 Portfolio once the trade is triggered

Current Sentiment: Bullish

Support 1: 32.87                   Resistance 1: 36.06

Support 2: 31.60                   Resistance 2: 38.00

Price has been moving in a downtrend since hitting a high of 48.5 in April 2017. The selloff accelerated since February 2018 after price broke below the 38.80 support area and price just broke a new 10 months low.

However, there might be a near-term rebound soon as the 32.87 support area seemed to be holding price up for now. Price broke below the 32.87 support area intraweek, but buyers managed to lift price back up and closed near the week’s high suggesting the bulls are winning. As a result, a hammer rejection bar was formed on the week ended 11/05/18 suggests a reversal higher next.

Moreover, the sharp selloff from the past few months has also led the RSI into the oversold region since March 2018 suggesting for a mean reversion higher soon. RSI measures momentum. A RSI reading above 70 represents overbought condition while a RSI reading below 30 represents oversold condition. In addition, a bullish divergence is forming currently with the recent bearish break below the 32.87 support area. Price continued to form a Lower Low in the week ended 11/05/18 while the RSI is forming a Higher Low at 29 shown by the diagonal line in the chart.

Expect price to rebound higher next once the bullish follow-through occurs for price to test the 36.06 resistance area followed by 38.00.


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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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