Technical Buy

Wing Tai Ltd – Daily timeframe

*Entry Price: 2.16          Stop loss : 1.96       Take profit : 2.34

*Wing Tai Ltd will be added to the Phillip 20 Portfolio once the trade is triggered

Current Sentiment: Bullish

Support 1: 2.00                     Resistance 1: 2.24

Support 2: 1.97                     Resistance 2: 2.34

After falling for –18% since hitting a high of 2.44 in January, price seemed to have found a strong base near the 2.00 psychological round number. To be exact, there is a confluence of support around the 50% Fibonacci retracement level and 2.01 support area back in July 2017. 

After testing the 2.00 psychological round number on 04/04/18, buyers managed to hold that level intact, and since then, price has been bouncing and consolidating around that area. The recent rise in bullish momentum has resulted in price breaking above the 2.06 immediate range high showing some early sign of strength. Moreover, the bullish follow through on 14/05/18 succeeded in breaking price above the 2.13 resistance area, 60 and 200 day moving average suggests the resumption of the long-term uptrend. In addition, the volume has been picking up lately showing growing interest.

Expect price to head higher next to test the 2.24 resistance area followed by 2.34.