Strategy:
Traders can look to buy between S$2.68 – S$2.84 with a stop loss at S$2.54. The 1st target price will be S$3.08 and the 2nd target price at S$3.18. 3rd target price at S$3.40.
Technical snapshot:
DFI Retail group corrective downside channel is likely to come to an end after completing a complex sub-three wave structure within the downtrend channel .Price action saw a potential reversal to the upside:
- The bullish engulfing candle was seen rebounding off the S$2.58 support and closing above the lower band of the Bollinger band last Friday. Moreover, the bullish marobozu was seen closing above the 20-
SMA of the band, confirming the reversal of the engulfing. - Stochastic oscillator indicates an oversold signal.
- Volume was seen rising, confirming the bullish reversal break.
- DM+ was seen rising.
