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:
- A bullish candle which broke out of the falling wedge on Tuesday has confirmed the return of the bull.
- 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.
- 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.
- 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
