Raffles Medical Group Ltd (SGX: BSL) A potential breakout of a bullish cup & handle formation to retest the resistance zone at $1.45-1.54:   

1. The price broke out of a bullish cup & handle formation on 30 November accompanied with increased volume, which provides a bullish signal.
2. The Moving Average Convergence Divergence (MACD) technical indicator is also currently displaying increasing momentum.
3. The price could retest resistance zone 1 at S$1.41-1.45 first before heading to resistance zone 2 at S$1.49-1.54, where the $1.54 swing high level is confluent with the projected target of the cup & handle breakout, taking the breakout height of the cup of $0.21 projected onto the handle breakout point at $1.34.

Our institutional research has a fundamental recommendation of BUY and target price of S$1.46.

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

CHART LEGEND

Red box = Resistance zone

Green box = Support zone