Trade of the Day

Del Monte Pacific Ltd (SGX: D03)

(Current Price: S$0.240) – TECHNICAL BUY

Buy price: S$0.240     Stop loss: S$0.230    

Take profit 1: S$0.275     Take profit 2: S$0.290

The price found support at the downtrend channel support, with selling pressure easing as price started to trade sideways. The Relative Strength Index (RSI) technical indicator is also showing bullish divergence on both daily and weekly timeframes, where higher lows were made while price made lower lows into the support.

The price could rebound in the current downtrend to test the first resistance level at S$0.275, which was a previous swing low support level in October last year now turned resistance.

It could then head to the next resistance level at S$0.290, confluent with a 50% Fibonacci retracement level using the swing high of S$0.350 and swing low of S$0.230 as points of reference.

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

Our research team has a fundamental recommendation of ‘BUY’ for this counter and a target price of S$0.400.