Trade of the Day
Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6)
(Current Price: S$1.65) – TECHNICAL SELL
Sell price: S$1.65 Stop loss: S$1.70 (-3.03%)
Take profit 1: S$1.55 (+6.06%) Take profit 2: S$1.50 (+9.09%)
The price broke down a consolidation triangle after pulling back from the main uptrend channel resistance. The Moving Average Convergence Divergence, or MACD, and Relative Strength Index, or RSI technical indicators are also displaying bearish momentum.
The price could retest the first support level at S$1.55, which was a previous horizontal resistance breakout level in July. It could then test the next support level at S$1.50, confluent with the uptrend support line and consolidation triangle breakdown target level when using the height of S$0.18 and projecting onto the breakdown level at S$1.68.
Expected timeline of the trade is 4-12 weeks from the date of report issuance.
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