SingPost Ltd – Daily timeframe (Update from 11 October 2017)
*Entry Price: 1.40 Stop loss : 1.21 Take profit : 1.55
*SingPost Ltd will be added to the Phillip 20 Portfolio once the trade is triggered
Current Sentiment: Bullish
Support 1: 1.32 Resistance 1: 1.45
Support 2: 1.28 Resistance 2: 1.55
The double bottom formation failed to play out after the last update as the bullish momentum lost steam in December 2017. Sellers tried to take price down once again in December 2017 and January 2018 but were stopped by the 1.23 support area.
The strong bullish reversal off the 1.23 support area since January 2018 has confirmed the formation of a triple bottom where price is currently in an uptrend. Moreover, the 20 day moving average has also crossed above the 60 day moving average on 24/01/18, further validating the start of the uptrend.
The recent correction off the 1.47 high since 12/02/18 might be presenting an opportunity to catch the dip and re-enter into the uptrend. The correction was halted perfectly off the confluence of support at the 200 day moving average, 61.8% Fibonacci retracement level and 1.31 resistance turned support area since 05/03/18. Moreover, the bullish follow through on 12/03/18 succeeded in closing price back above the 20 day moving average and pullback line with increasing volume suggests the resumption of the uptrend next.
Expect the uptrend to resume next for price to test the 1.45 resistance area followed by 1.55.