Venture Ltd – Daily timeframe
*Entry Price: 17.14 Stop loss: 15.98 Take profit: 18.50
*Venture Ltd will be added to the Phillip 20 Portfolio once the trade is triggered
Current Sentiment: Bullish
Support 1: 16.55 Resistance 1: 17.99
Support 2: 16.00 Resistance 2: 18.50
Price has been in a steep downtrend after hitting a high of 29.65 in April. It has fallen as much as –45% from the April’s high to the recent yearly low of 16.07. Nonetheless, there might be a near-term rebound soon as the 16.00 psychological level held up.
With price nearing the 16.00 psychological level on 16/07/18, the bulls appeared ready to defend that psychological level. As a result, price formed a dragonfly doji rejection showing the first sign of strength. The subsequent bullish follow through on 17/07/18 succeeded in breaking above the downtrend line with increasing volume signals a reversal higher next. The recent low of 16.07 could be the near-term bottom if the bullish momentum sustains.
Moreover, the recent sharp selloff has also led the Relative Strength Index (RSI) into oversold condition since 19/06/18 suggesting for an imminent correction. The RSI hit an extreme low of 20.55 on 06/07/18. With the recent bullish rejection off the 16.00 psychological level, the RSI has once again recovered back above the 30 oversold condition suggests a mean reversion higher next.
Thus, expect price to rebound higher next to test the 17.99 resistance area followed by 18.50.
Join our telegram channel on technical analysis for trends, entry and exit prices over Stocks, ETFs, and Indices!Featuring regular TA posts and requests to analyse specific stocks