Trade of the Day

Best World International Ltd (SGX: CGN)

(Current Price: S$1.84) – TECHNICAL BUY

Buy price: S$1.84     Stop loss: S$1.80     Take profit 1: S$2.01

Take profit 2: S$2.14

The price found support upon retest of the downtrend channel support with confluence of a previous resistance turned support retest at S$1.82 on 25th May. Both Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) technical indicators are also displaying bullish momentum, where higher lows were formed when price made a lower low into the support.

The price could head to the first resistance level at S$2.01, which is confluent with the recent swing high resistance formed in mid-May.

It could then head to the next resistance level at S$2.14, which was a previous horizontal support in March, now turned resistance following a breakdown.

Expected timeline of the trade is 4-8 weeks from the date of report issuance.