Friday, February 07, 2025

Ascendas Reit - 07 Feb 2025

Price Action Analysis for CapLand Ascendas REIT (A17U) – 1D Chart


1. Trend Analysis

  • Primary Trend: The stock is currently in a downtrend, evident from the series of lower highs and lower lows since mid-2023.
  • Recent Price Action:
    • The most recent lower high: ~$2.66 (marked in red)
    • The most recent lower low: ~$2.51 (marked in green)
    • The price is now attempting to break above $2.64, possibly forming a reversal attempt.
  • Trend Weakening Signs:
    • There are multiple failed breakout attempts (e.g., $2.80, $2.82, and $2.99).
    • Recent price action shows overlapping bars and smaller candles, indicating indecision.

2. Key Price Action Signals

  • Strong Trend Bars:
    • The last bullish candle (Feb 7, 2025) shows a strong move above $2.60 with decent follow-through.
    • However, previous breakouts around $2.66–$2.69 were rejected, signaling potential resistance.
  • Reversal Patterns:
    • Double bottom formation around $2.51–$2.53 (Nov 2024 & Jan 2025) suggests possible support.
    • If price moves past $2.66 resistance, it could confirm a short-term bullish reversal.
  • Inside Bars:
    • Multiple consolidation areas (e.g., Nov 2023 and Jan 2024), indicating supply/demand imbalance.
  • Doji Candles:
    • Found near $2.55 support zone, signaling market indecision.

3. Support & Resistance Levels

  • Major Resistance Zones:
    • $2.66 – $2.69: Previously rejected levels.
    • $2.80 – $2.83: Previous supply zone where sellers dominated.
    • $2.99: A psychological resistance level where price reversed sharply.
  • Major Support Zones:
    • $2.51 – $2.53: Strong historical support.
    • $2.55: A recent pivot level showing buyers stepping in.

4. Breakout & Pullback Analysis

  • Breakout Strength:
    • The current push above $2.60 is relatively strong, but needs confirmation above $2.66 for bullish continuation.
  • Pullback Behavior:
    • The previous pullbacks have been deep, indicating a weak bullish momentum.
    • If price retests $2.55 and holds, it may confirm a higher low.

5. Market Context & Trading Bias

  • Current Market Phase: The stock is transitioning from a downtrend to a possible range-bound phase, with a potential short-term reversal.
  • Trader Psychology:
    • Buyers are attempting to take control around $2.55–$2.60.
    • Sellers are still active around $2.66.
    • If bulls fail to push past $2.66, expect further downside towards $2.55.
  • Potential Trade Ideas:
    • Bullish bias: Wait for a confirmed breakout above $2.66 with strong volume.
    • Bearish bias: Look for rejection at $2.66 for a potential short trade targeting $2.55.

Final Thoughts:

  • The market is at a critical level, deciding between a bullish breakout or a range-bound continuation.
  • Watch for volume confirmation at key resistance levels.
  • A move above $2.66 could signal a bullish reversal, while rejection could lead to another test of $2.55–$2.51.

Disclaimer: This analysis is for educational purposes only and should not be considered investment advice. Trading involves significant risk of loss and you should consult with a financial advisor before making any investment decisions.

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