Technical Buy

Yongnam Ltd – Daily timeframe (Update from 22 November 2017)

*Entry Price: 0.320       Stop loss : 0.275     Take profit : 0.365

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

Current Sentiment: Bullish

Support 1: 0.285                   Resistance 1: 0.340

Support 2: 0.265                   Resistance 2: 0.365

Price has been moving in a strong uptrend since July 2017 and recently went into a sharp correction. After hitting a high of 0.375 on 29/01/18, price sold off 25% to a low of 0.28 in the next two weeks.

However, with the benefit of hindsight, the recent bullish price action shows some strong support building up. The confluence of support at 50% Fibonacci retracement level,  0.285 support area and 200 day moving average succeeded in halting the selloff.

Additionally, the subsequent bullish rejection off the support area since 06/03/18 has further validated the importance of the support area. Moreover, there was a strong bullish break above the 20, 60 day moving average and 0.31 range high on 14/03/18 with increasing volume suggests the resumption of the uptrend.

Expect price to head higher next to test the 0.340 resistance area followed by 0.365.