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.
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