Singapore Exchange Ltd (SGX: S68) decline has been met with resistance after prices failed to break below $8.00 psychological support despite our sell call on 2^nd July. Prices managed to stay above $8.25. Based on the technicals, prices are set to rally once again:

1. The formation of the potential inverted head and shoulder at the bottom of the range indicate strong buying ahead. Besides the pattern is currently trading above the psychological support of $8.00.
2. Tweezer bottom at the right shoulder right after the strong sell down on Tuesday signifies that the bulls are staging a comeback.
3. Target price is at $9.23, which is the 61.8% Fibonacci retracement level of the immediate swing high-low at $10.03-$7.96 and the 200% extension level of the inverted head and shoulder formation.

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

*The neckline resistance at $8.50 remains a key level to be broken to confirm the bullish rally of the inverted head and shoulder. The psychological resistance at $9.00 is the 2^nd crucial level to be watched as well. As it confluence with the 50% level and 161.8% extension level of the neckline.

CHART LEGENDS

Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average