Technical Buy

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.