Strategy:
Traders can look to buy at S$6.98 – S$6.80, with a stop loss at S$6.67. The 1st target price will be S$7.31 and the 2nd target price at S$7.43. 3rd target price at S$7.80
Technical snapshot:
CDL has met our stop loss at S$6.67 before reverting higher based on our previous Trendspotter dated 9 June. We expect some brief upside after price action suggest the bear may be exhausted. Below are some of the pointers:
- The bullish break above the falling wedge is the first signs of a potential reversal to the upside.
- Bullish break above S$6.89 support turned resistance was seen confirming the double bottom formation.
- Volume saw a rise, supporting the breakout
- Long-term Stochastic oscillator (60, 13, 13) has performed an oversold crossover.
- MACD’s histogram is rising and has return to the neutral zero line, suggesting that the bear’s momentum may be over.