Technical Pulse: Jardine Matheson Holdings Ltd July 29, 2020 224

Jardine Matheson (SGX: J36) has been on a downtrend since last year Jan 2019 when a trading glitch occurred. However, recent technicals indicate upside for the stock:

  1. A bullish candle which broke out of the falling wedge on Tuesday has confirmed the return of the bull.
  2. The bullish candle on Tuesday also indicates a formation of the morning star pattern, a strong bullish reversal pattern. To add on, the reversal happened above the $40.00 price level.
  3. Potential double bottom formation reveals a strong desire for a bullish reversal ahead. Should the neckline resistance break upward, we would see a price target of 161.8% extension of the double top.
  4. Stochastic Oscillator is exhibiting oversold crosses, indicating a potential reversal.

 

*Timeline of the trade should be between 1-3 weeks from the date issued.

 

CHART LEGENDS

Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average

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About the author

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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