YZJ Shipbldg SGD – Daily timeframe
*Entry Price: 1.61 Stop loss : 1.45 Take profit : 1.74
*YZJ Shipbldg SGD will be added to the Phillip 20 Portfolio once the trade is triggered
Current Sentiment: Bullish
Support 1: 1.480 Resistance 1: 1.64
Support 2: 1.385 Resistance 2: 1.74
Price has been moving in a strong uptrend since January 2017 after the 20 day moving average crossed above the 60 day moving average. The uptrend formation of higher highs (HH) and high lows (HL) remain intact even after the recent correction in price since 17/11/17.
Price hit a record high of 1.74 on 17/11/17 where it subsequently moved into a correction. The correction did signal some form of weakness as the 20 day moving average crossed below the 60 day moving average on 20/12/17 but the long-term uptrend remains intact.
More recently since 26/12/17, price has been making some recovery off the 1.48 resistance turned support area and 38.2% Fibonacci retracement level. We might be witnessing the formation of the next higher low (HL) point within this uptrend at the 22/12/17 low of 1.46. After bouncing off the 1.48 support area, the bullish follow through on 09/01/18 has also convincing broke price above the 1.54 range high, 20 and 60 day moving average with increasing volume signals further sign of strength.
Expect the uptrend to resume next for price to test the 1.64 resistance area followed by 1.74.