Trade of the Day

ISDN Holdings Ltd (SGX: I07)

(Current Price: S$0.445) – TECHNICAL BUY

Buy price: S$0.435     Stop loss: S$0.410

Take profit 1: S$0.490     Take profit 2: S$0.520

The price found support upon retest of an uptrend support line on 11^th July, confluent with a double bottom retest of a swing low formed in early June this year. The Moving Average Convergence Divergence (MACD) technical indicator is also displaying bullish divergence with a higher low formed, which suggests decreasing selling momentum.

The price could rebound and head to the first resistance level at S$0.490 to retest the recent swing high formed in late June this year with substantial volume. It could then head to the next resistance level at S$0.520, confluent with a key horizontal resistance level, as well as the downtrend resistance line.

Expected timeline of the trade is 4-12 weeks from the date of report issuance.