Trade of the Day
Sheng Siong Group Ltd (SGX: OV8)
(Current Price: S$1.66) – TECHNICAL BUY
Buy price: S$1.63 Stop loss: S$1.59
Take profit 1: S$1.71 Take profit 2: S$1.80
The price found support upon retest of the uptrend support line and a previous horizontal resistance turned support level at S$1.63. The Moving Average Convergence Divergence (MACD) technical indicator made a bullish crossover recently, which could signal for a trend reversal and pick up in bullish momentum.
The price could head to the first resistance level at S$1.71 which was a previous range support it broke down in May this year turned resistance upon a retest. It could then head to the next resistance level at S$1.80 confluent with the swing high formed in May this year.
Expected timeline of the trade is 4-16 weeks from the date of report issuance.
Our research team has a fundamental recommendation of “ACCUMULATE” with a target price of S$1.98.
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