Jumbo Ltd – Daily timeframe
*Entry Price: 0.575 Stop loss : 0.525 Take profit : 0.650
*Jumbo Ltd will be added to the Phillip 20 Portfolio once the trade is triggered
Current Sentiment: Bullish
Support 1: 0.530 Resistance 1: 0.600
Support 2: 0.500 Resistance 2: 0.650
Price has been moving in a steep decline since February 2017 after hitting a high of 0.79, but a reversal might be happening.
After eight months of selloff, price started rebounding and consolidating around the 50% long-term Fibonacci retracement level. Buyers succeeded in keeping the 50% Fibonacci retracement level intact since 17/08/17, but the rebound was short-lived. Further selling pressure came in subsequently, and the 50% Fibonacci retracement level held up once again, showing a great deal of support around this area.
The second bullish rejection off the 50% Fibonacci retracement level on 21/09/17 hints a possible double bottom formation here. Moreover, the bullish rejection broke price above the immediate downtrend line with increasing volume suggests a shift in sentiment to the upside.
Expect price to reverse higher next to test the 0.600 resistance area followed by 0.650. Further bullish momentum would be confirmed once price closes above the long-term downtrend line.
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