Technical Pulse: Singapore Exchange Ltd September 16, 2020 334

Singapore Exchange Ltd (SGX: S68) since SGX broke out of the inverted head and shoulder formation as reported back in 24th July and this has confirmed SGX upside despite making a minor corrective pullback. The technical has indicate that the stock has completed its correction and is heading to the upside:

  1. SGX has completed a regular flat corrective waves within the broadening wedge/flag and this is an indication that SGX will resume its upside.
  2. Morning star formation alike pattern has closed above the 123.6% of wave (a)-(b) and 50-day moving average, signalling a revival of the bull.
  3. The strong bullish candle managed to close above the neckline resistance of the head and shoulder formation. Indicating that the bull has gained back the momentum.

 

*Timeline of the trade is 4 weeks from the date issued.

*The last hurdle for SGX is to break above the 200 day moving average and the resistance level of $8.90. Breaking it will ensure a smooth upside above $9.00

 

CHART LEGENDS

Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average

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CP Chuan
CP Chuan

Hi Mr. Chua, it clear 200ma. The sky is clear. Thx a lot for the good analysis.

About the author

Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 9 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory and Supply & Demand strategies as he believes that history plays an important role in how the market is reflected in the future.

He graduated with a Bachelor of Economics and Finance from University of Murdoch.

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