Trade of the Day
Samudera Shipping Line Ltd (SGX: S56)
(Current Price: S$1.32) – TECHNICAL SELL
Sell price: S$1.32 Stop loss: S$1.40 Take profit: S$1.19
The price has been trading in a downtrend channel following a breakdown of the uptrend channel, and formed a bearish engulfing candlestick on 20th March at the downtrend channel resistance. Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicators are also displaying bearish divergence as lower highs were formed while price made higher highs in the previous uptrend channel, which provides a bearish signal.
We could see a retest of the support level at S$1.19 which is confluent with 2 recent swing low supports in mid and end February this year, a previous swing high resistance in August last year as well as the current downtrend channel support.
Expected timeline of the trade is 2-4 weeks from the date of report issuance.
I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).
