Technical Pulse: YZJ Shipbldg Ltd July 31, 2017 454

Technical Pulse

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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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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