Technical Pulse: MM2 Asia Ltd July 25, 2017 434

Technical Buy

MM2 Asia Ltd – Daily timeframe (Update from 20 July 2017)

25 Jul

*Entry Price: 0.535                Stop loss : 0.470                Take profit : 0.645

*MM2 Asia Ltd will be added into the Phillip 20 Portfolio once the trade is triggered

Current Sentiment: Bullish

Support 1: 0.500                   Resistance 1: 0.595

Support 2: 0.475                   Resistance 2: 0.645

Due to the lack of bullish follow through after the last update, price slipped lower into the correction instead and invalidated the trade setup. However, price seems ready to rebound back into the long term uptrend after the strong sell off.

The correction took price down to the 200 day moving average where price was met with strong support. Moreover, the deeper correction has taken price down to test a longer dated 61.8% Fibonacci retracement level from December 2016 where price reversed sharply.

As a result, a surging volume dragonfly doji was form on 24/07/17 suggests a reversal back into the uptrend if the bullish momentum sustains.

With the current bullish price action, expect price to rise next to test 0.595 resistance area followed by 0.645.

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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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