Technical Pulse: Venture Ltd July 18, 2018 723

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.

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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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