Technical Pulse: Marco Polo Marine Ltd September 7, 2022 114

 

Marco Polo Marine Ltd (SGX: 5LY) A potential bearishR reversal to the downside as:   

 

  1. The formation of a dark cloud cover candlestick pattern on 6 September at the confluence of trend channel resistance and 0.045-0.048 resistance area provides a bearish signal.
  2. Bearish divergence was also observed where price made a higher high at the resistance area while the Relative Strength Index (RSI) technical indicator made a lower high. This discrepancy points to a bearish downside as momentum is slowing despite the bullish price action.
  3. Price could reach support zone 1 at 0.038-0.040 with the ichimoku base line providing support before heading towards support zone 2 at 0.034-0.036 thereafter with the previous breakout point of a consolidation wedge providing support.

 

 

*Expected timeline of the trade is 13 weeks from the date of report issuance.

 

 

CHART LEGEND

 

Red box = Resistance zone

Green box = Support zone

Blue line = Conversion line

 

Red line = Base line

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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