Technical Buy

SingPost Ltd – Daily timeframe (Update from 13 March 2018)

*Entry Price: 1.41        Stop loss : 1.21       Take profit : 1.55

*Singpost has been added to the “Phillip 20 Portfolio“ since 13 March 2018

Current Sentiment: Bullish

Support 1: 1.32                     Resistance 1: 1.45

Support 2: 1.28                     Resistance 2: 1.55

Buyers failed to sustain the bullish momentum after the last update, and the correction took over. Nonetheless, there seemed to be a strong support around the 200 day moving average, 61.8% Fibonacci retracement level and 1.32 support area.

After breaking briefly below the 1.32 support area on 26/03/18 intraday, buyers succeeded in defending the support area and closed price at the day’s high of 1.35 resulting in the formation of a Bullish Engulfing Bar. In addition, the bullish follow through on 27/03/18 also broke price back above the 20, 60 day moving average and downtrend line with increasing volume suggests a possible sign of reversal to the upside.   

Expect the uptrend to resume next for price to test the 1.45 resistance area followed by 1.55.