Technical Pulse: Yangzijiang Shipbuilding Holdings Ltd July 30, 2020 271

Yangzijiang’s (SGX: BS6) corrective wave has prolonged beyond our expectation. Based on our Elliott wave count on 28th May, the bigger phase of the wave count is still valid and technicals also show confluence with the bullish action ahead:

  1. The current sub-wave action has become a prolonged potential 5-wave triangle. Current price action suggest that the stock is setting up to form wave (D).
  2. Bullish engulfing candle remained above the 50% Fibonacci retracement level and the immediate support at $0.900.
  3. A smaller falling wedge (Red lines) with the triangle indicates that there is an upcoming bullish action ahead.
  4. Stochastic Oscillator indicates a potential oversold cross and a flat divergence, implying that the selling momentum is coming to a halt.

 

*Timeline of the trade should be between 1-3 weeks from the date issued.

* Should price breaks lower, the next support zone will be at 61.8% Fibonacci retracement level.

 

CHART LEGENDS

Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average

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Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 9 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory and Supply & Demand strategies as he believes that history plays an important role in how the market is reflected in the future.

He graduated with a Bachelor of Economics and Finance from University of Murdoch.

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