Aztech Global Ltd (SGX: 8AZ) on the daily timeframe as of Friday, 30 May 2025
1. Trend Analysis
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Primary Trend: Downtrend
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Confirmed by a sequence of lower highs and lower lows:
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Highs: 1.04 → 0.80 → 0.795
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Lows: 0.675 → 0.495
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Recent sideways action suggests a consolidation phase around 0.53–0.55 after a sharp down leg.
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Trend Weakening/Transition Signals:
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From early May onward, the stock has moved sideways after hitting 0.495, forming a base pattern. Bars are small, overlapping, and volume is decreasing – signaling reduced selling pressure.
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The volume spike on the down bar near 0.495 (early May) appears to mark climactic selling, followed by range-bound activity – a classic accumulation phase.
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2. Key Price Action Signals
Volume Spikes & Candle Interpretation
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Massive Red Volume Bar (Late Oct):
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Strong bearish breakdown from ~1.04 to sub-0.70 in a few days.
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Huge red bar with follow-through selling, confirmed by very high volume.
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Indicates institutional liquidation or panic selling.
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Volume Spike (Early March):
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Tall green bar near 0.70 → 0.80 breakout.
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Good volume confirms bullish breakout, but lack of sustained higher highs (capped at 0.795) hints at weak follow-through.
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Volume Spike + Large Red Bar (Early May):
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Large red candle with a long wick down to 0.495 on extreme volume.
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This could be exhaustion selling, marking the bottom of the current downtrend.
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Reversal Patterns
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Pin Bar (Wick Down) at 0.495:
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Strong tail rejection with high volume suggests buying interest stepped in.
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Set the short-term support level.
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Small-bodied candles post-bottom indicate indecision but also absorption of selling.
Inside Bars / Doji / Compression
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Several small-bodied candles in the 0.530–0.545 region with low volume.
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Market is coiling, preparing for potential breakout.
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Gap Down (April-May Transition):
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Gap from ~0.74 to ~0.61
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Massive gap down, likely on negative earnings or downgrade news.
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The follow-through selling tested 0.495 but stabilized.
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3. Support & Resistance Levels
| Level (SGD) | Type | Notes |
|---|---|---|
| 1.04 | Resistance | Breakdown zone in Oct; large red volume. |
| 0.80–0.795 | Resistance | Failed rally and lower high. |
| 0.73 / 0.725 | Resistance | Minor supply zones. |
| 0.675 | Former Support | Broken down; now likely resistance. |
| 0.495 | Support | Recent swing low with pin bar on volume. |
| 0.535–0.540 | Short-term R | Present price ceiling during consolidation. |
4. Breakout & Pullback Analysis
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Breakout Attempt (March):
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Break above 0.705 → ran to 0.80. Follow-through was weak → failed breakout.
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Pullback in April:
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Formed a bull flag, but heavy volume selling at the top (0.795) resulted in a failed continuation and eventual collapse.
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Current Setup:
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Sideways base formation around 0.535–0.540.
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If breakout happens above 0.545–0.550 on volume, short-term bullish setup is likely.
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5. Market Context & Trading Bias
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Trend Context: Long-term downtrend, but base building in progress.
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Bias:
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Short-Term: Neutral-Bullish (possible bounce forming).
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Medium-Term: Cautiously Bearish, unless 0.675 is regained.
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Long-Term: Bearish below 0.800/0.795.
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Psychology:
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Earlier stages: Fear, capitulation (Oct–May).
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Current: Indecision and early accumulation.
6. Supply, Demand & Liquidity Analysis
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Supply Zones:
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0.675, 0.73, 0.80 – previous highs before sharp reversals.
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Demand Zones:
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0.495 – strong rejection tail, significant buying.
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Liquidity Traps:
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Early May: large volume on 0.495 test could be trap for late shorts.
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Potential Trade Setups:
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Pullback Buy: If breakout > 0.545 with volume, enter on pullback to 0.53.
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Breakout Play: Buy > 0.550 with stop at 0.520.
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Reversal Trade: Aggressive buyers can long above 0.540, with tight stop below 0.520.
7. Risk Management Strategy
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Bullish Trade Plan:
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Entry: Break above 0.545 with volume spike.
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Stop-Loss: Below 0.520 (recent range low).
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Target 1: 0.595 (minor structure).
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Target 2: 0.675 (major resistance).
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Bearish Trade Plan (if breakdown):
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Entry: Break below 0.520.
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Stop-Loss: Above 0.545.
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Target: Retest 0.495 → if fails, 0.470 (new low potential).
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8. Company News Summary (Last 3 Months)
✅ [May 6, 2025] – Aztech Global Q1 2025 Earnings Miss
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Revenue down 12% YoY; net profit dropped 25%.
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Management cited slower US consumer tech orders and rising costs.
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Stock gapped down sharply on earnings day → likely cause of the 0.495 low.
✅ [April 25, 2025] – Analyst Downgrade
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Regional brokerage downgraded stock to “Hold” from “Buy” with a revised target of SGD 0.60 (from 0.85).
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Noted margin compression and weak order visibility.
✅ [March 12, 2025] – New Contract Win (Positive)
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Won $35 million in new IoT contracts.
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Stock had a brief rally to 0.800 post-announcement – momentum was not sustained.
Summary & Final Calls
| Timeframe | Bias | Notes |
|---|---|---|
| Short-Term | 🔄 Neutral-Bullish | Base forming; potential breakout > 0.545. Tight range. |
| Medium-Term | 🔻 Bearish | Lower highs intact; needs reclaim of 0.675 to flip bias. |
| Long-Term | 🔻 Bearish | Dominant downtrend since Oct; 1.04 is distant resistance. |
🔍 Key Insights
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0.495 is a potential medium-term bottom supported by volume and price rejection.
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A break above 0.545–0.55 could trigger a rally to 0.595–0.675.
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Volume is crucial – without it, any breakout attempt may fail.
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Current price structure suggests a low-risk entry zone for bulls, with tight stops.
Disclaimer:Please note that this analysis is for educational purposes only and should not be taken as investment advice. Trading involves significant risk, and you should consult with a financial advisor before making any decisions.
Dividend: 18.52%
