Technical Pulse: Spackman Ltd July 27, 2018 676

Techincal Sell

Spackman Ltd – Daily timeframe

*Entry Price: 0.057     Stop loss : 0.065     Take profit : 0.047

Current Sentiment: Bearish

Support 1: 0.054                   Resistance 1: 0.062

Support 2: 0.047                   Resistance 2: 0.069

Price has been moving in a steady downtrend since March 2017 after the 20 day moving average crossed below the 60 day moving average on 14/03/17. Since the bearish crossover, the 20 and 60 day moving average has relentlessly capped the upside move. Each correction higher was firmly rejected by the 20 and 60 day moving average as the long-term downtrend retook control shown by the highlighted boxes.

As price broke another new 52-week low recently in June 2018 at 0.047, price started to enter into a correction phase higher. However, the bearish sentiment remained intact as the 60 day moving average once again rejected the upside move. Price failed to close above the 60 day moving average and 50% Fibonacci Retracement level since 23/07/18. Further decisive move from the bears is exhibited on 26/07/18 as price broke below the pullback line suggesting for a continuation move into the long-term downtrend.

Expect price to head lower next to retest the 0.054 support area followed by 0.047.

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About the author

Profile photo of Jeremy Ng

Jeremy Ng
Research Analyst
Phillip Securities Research Pte Ltd

Jeremy specialises in Technical Analysis and has 10 years of experience in studying price action. His areas of expertise include intermarket analysis on the equities, currencies, commodities and bonds market.

He is also a regular columnist on The Business Times - every Monday ChartPoint column.

He graduated with a Bachelor of Science in Banking and Finance from University of London.

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