Technical Pulse: JB Foods Ltd April 10, 2018 697

10 apr

*Entry Price: 0.590        Stop loss : 0.490       Take profit : 0.700

*JB Foods Ltd will be added to the Phillip 20 Portfolio once the trade is triggered

Current Sentiment: Bullish

Support 1: 0.530                   Resistance 1: 0.660

Support 2: 0.490                   Resistance 2: 0.700

Price has been moving in a strong uptrend since November 2017 as the 20 and 60 day moving average continues to act as a springboard for propelling price higher. Notice how each correction was perfectly halted by the 20 or 60 day moving average shown by the highlighted areas.

Despite the sharp selloff in March with price falling –19% off the 0.66 high, the long-term uptrend remains intact as price continues to hold on to the uptrend structure of Higher Highs (HH) and Higher Lows (HL). Moreover, with the recent selloff, the 60 day moving average has once again halted the selloff since 04/04/18. As a result, an increasing volume Bullish Outside Bar was formed on 09/04/18 signals the resumption of the uptrend next. Furthermore, the Bullish Outside Bar also succeeded in breaking above the pullback line suggests the end of the correction/selloff.

Expect price to head higher next to retest the 0.66 resistance area followed by 0.700.

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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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