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.
Join our telegram channel on technical analysis for trends, entry and exit prices over Stocks, ETFs, and Indices!Featuring regular TA posts and requests to analyse specific stocks