Technical Pulse: SPH Ltd September 25, 2017 744

Technical buy

SPH Ltd – Weekly timeframe

25 sept

*Entry Price: 2.75                                Stop loss : 2.53                                     Take profit : 3.00

*SPH Ltd will be added to the Phillip 20 Portfolio once the trade is triggered

Current Sentiment: Bullish

Support 1: 2.54                     Resistance 1: 2.88

Support 2: 2.31                     Resistance 2: 3.00

Price has been moving in a sharp downtrend since July 2016 taking out multiple critical support area especially the 3.00 psychological round number. Price has also been making new 52 weeks low consecutively for the past five weeks, but the selloff seemed to have weakened highlighted by the current price action.

The 2.54 support area from June 2009 appears to be holding price up. There was a surging volume hammer rejection off the 2.54 support area for the week ended 11/09/17 suggesting a possible bottom here. Moreover, another bullish hammer reversal bar appeared the following week for the week ended 22/09/17 showed some sign of recovery as price failed to break a new 52 weeks low.

In addition, the Relative Strength Index is signalling extreme oversold condition as it recently hit a record low of 15 in the week ended 11/09/17. More confirmation of a bottom will appear once further bullish follow through happens in conjunction with the RSI recovering back above 30.

Expect price to rebound higher next to test the 2.88 resistance area followed by 3.00.

25 septt

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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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