Sunningdale Tech Ltd – Daily timeframe
*Entry Price: 1.94 Stop loss: 1.81 Take profit: 2.18
*Sunningdale Tech Ltd will be added to the Phillip 20 Portfolio once the trade is triggered
Current Sentiment: Bullish
Support 1: 1.82 Resistance 1: 2.05
Support 2: 1.69 Resistance 2: 2.18
Since hitting a high of 2.40 in November 2017, price went into a deep correction. Nevertheless, the long-term uptrend since August 2016 remains intact as the confluence of 200 day moving average, 1.82 resistance turned support area and the long-term 38.2% Fibonacci retracement level seemed to be keeping a floor on price.
There were two strong bullish rejections around the support area in December shown by the highlighted area and price is once again testing the key support area.
The most recent price action is showing further sign of strength as the bullish rejection on 22/01/18 succeeded in forming a Bullish Engulfing Bar. Moreover, the Bullish Engulfing Bar was backed by increasing volume signalling a reversal higher next.
As long as the confluence of support at the 200 day moving average, 1.82 resistance turned support area and the long-term 38.2% Fibonacci retracement level holds, the long-term uptrend should resume. Expect price to head higher next to test the 2.05 resistance area followed by 2.18.
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