Technical Pulse: Valuetronics Ltd November 2, 2017 1022
TAKE PROFIT
Valuetronics Ltd – Daily timeframe (Update from 28 September 2017)
*Take Profit: 1.005
Current Sentiment: Bearish
Support 1: 0.980 Resistance 1: 1.050
Support 2: 0.935 Resistance 2: 1.100
The uptrend proceeded along as expected after the last update and managed to test the 1.050 psychological resistance area. However, some sign of exhaustion appeared after the 1.050 rejected price on 31/10/17. The subsequent bearish follow through on 01/11/17 also formed a bearish evening star formation suggests a high likelihood of a correction next.
Notice how the bullish bar volume spike on 14/08/17 resembles the current bullish bar volume spike on 30/10/17. The last time that happened, price went into a -15% correction
Hence, with the current bearish price action, we have decided to close out our position in Valuetronics since 28/09/17 at 1.005 in anticipation of a correction. As a result, this trade contributed an equal-weighted gain of 1.09% to the “Phillip 20 portfolio.”
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Featuring regular TA posts and requests to analyse specific stocksAbout the author
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.