Penguin International (SGX: BTM) bullish recovery since March has continued to gain momentum. Despite the consolidation since 17^th April, the wave analysis suggests that there is one more wave of upside before a sell-down resumes:

1. The pennant/symmetrical triangle indicates a complex sub-wave iv correction and is poised to breakout.
2. The bullish engulfing candle at the base of the pennant resting above the 0.500 psychological support level indicates a strong bullish momentum ahead.
3. The bullish engulfing candle is well-supported by the 22-day moving average.
4. On the indicator front, the 22-day moving average has crossed above the 50-day moving average, forming the bullish crossover or the ‘Golden’ cross.

*Timeline of the trade should be between 1-3 weeks from the date issued.

*The overall trend is still on the downside as price is still trending below the 200-day moving average. Should price reverse and break the base of the pennant, the next rebound will likely happen at the support zone 1 between 0.445-0.465.  

CHART LEGENDS

Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average

Green dotted line = 22 periods Moving average