Technical buy

Singapore O&G Ltd – Daily timeframe (Update from 13 July 2017)

*Entry Price: 0.490                             Stop loss : 0.420                                   Take profit : 0.555

*Singapore O&G Ltd will be added to the Phillip 20 Portfolio once the trade is triggered

Current Sentiment: Bullish

Support 1: 0.445                   Resistance 1: 0.510

Support 2: 0.425                   Resistance 2: 0.555

Price continued to fall after the last update as the bearish momentum picked up speed, taking out multiple support levels. However, the recent price action is suggesting a near term rebound after the 0.425 resistance turned support area succeeded in halting the sell-off.

The recent rebound of the 0.425 support area on 22/08/17 managed to close price back above the 20 day moving average on 13/09/17 signals an early stage of a recovery is ongoing. Moreover, the increasing volume bullish break on 13/09/17 has validated the inverted head and shoulders pattern after price broke above the neckline further confirming the bullish narrative.

Expect price to make a rebound next to test the 0.510 resistance area followed by 0.555.

Note: Our current fundamental view on Singapore O&G is a Buy rating with a fair value of $0.650.