YZJ Shipbldg Ltd – Weekly timeframe (Update from 26 July 2017)
Current Sentiment: Bearish
Support 1: 1.280 Resistance 1: 1.400
Support 2: 1.240 Resistance 2: 1.420
Price leapt higher as expected after the last update and continued to form a series of higher highs justifying for the strong uptrend.
However, the current bearish rejection off the 1.400 resistance area suggests a slow down in bullish momentum. Price tested the 1.400 psychological resistance area briefly for the week ended 28/07/17 but was sharply rejected off it. As a result, a shooting star rejection off the 1.400 resistance area was formed in the week ended 28/07/17 signals a period of correction next.
Moreover, the relative strength index (RSI) has been hovering around the 70 overbought region for the past 2 weeks and with the current shooting star rejection, the RSI managed to dipped back down to 67 implies a higher likelihood of a correction.
With the current bearish price action, price should correct further to test the 1.280 support area followed by 1.240.
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