SGX (SGX: Z68) strong rally after the breakout of the expanded flat in early March is stronger than expected. This was especially after the stock broke the 10.00 psychological barrier, reaching a high of 10.70. Although there is a correction entering late April, May’s performance seems rather positive with the current technical supporting the continuation of the bullish trend.

1. Price has been bouncing off the support level at 9.39 and the 50% Fibonacci retracement of 7.97-10.72 at 9.34. Effectively forming a double bottom.
2. Wednesday candle is a strong bullish candle with little upper shadow, displaying a sign of bullish strength. Also, it is a key bullish engulfing candle over the previous shooting star.
3. Prices have been trending above the 50 and 200 moving average since the break out of the expanding triangle in April.

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

*Another potential rebound level to lock on is at 61.8% region from 9.02-9.20, which is a key demand area.

CHART LEGENDS

Moving average

Red dotted line = 200 SMA

Blue dotted line = 50 SMA