CAPITALANDINVEST (9CI) - SGX
1. Trend Analysis:
- Primary Trend: The chart shows a clear downtrend since mid-2022, with a series of lower highs and lower lows.
- Lower Highs & Lower Lows:
- Lower Highs: 4.13 → 4.10 → 4.04 → 3.89 → 3.45 → 3.20
- Lower Lows: 2.99 → 2.83 → 2.62 → 2.42
- Trend Weakening Signs:
- Recent price action shows smaller range bars and consolidation near 2.50 - 2.60, suggesting potential accumulation or exhaustion of sellers.
- Strong counter-trend moves (e.g., rally to 3.20 before failing) indicate buyers attempting to reverse the trend but failing to sustain momentum.
2. Key Price Action Signals:
- Strong Trend Bars:
- Strong bear trend bars observed in sharp sell-offs, notably near 3.75, 3.38, and 3.20, with little follow-through from bulls.
- Reversal Signals:
- A bullish reversal attempt at 2.42 and 2.44, but without strong follow-through.
- Inside Bars & Consolidation:
- Inside bars seen in the 2.50-2.60 range, signaling potential breakout or breakdown.
- Doji Bars & Indecision:
- Several doji bars near 2.50-2.60, showing indecision—this could be a base forming or a continuation of the downtrend.
3. Support & Resistance Levels:
Major Support:
- 2.42-2.44 (recent swing low).
- 2.50-2.60 (current trading range).
Major Resistance:
- 2.78-2.80 (previous swing high).
- 3.20 (strong rejection point, major resistance in recent months).
Price Reactions:
- The 2.42-2.50 zone is acting as a key demand area, where buyers are attempting to defend the level.
4. Breakout & Pullback Analysis:
- Breakouts:
- Weak breakouts above 2.60, showing long wicks and rejection.
- Strong breakdowns from 3.20, suggesting continued bearish pressure.
- Pullbacks:
- The rally to 3.20 was a deep pullback in a downtrend before failing again.
- Recent price action lacks strong bullish follow-through, suggesting trend continuation.
5. Market Context & Trading Bias:
- Current Market Condition:
- Stock is in a downtrend but showing signs of potential basing near 2.50.
- Key decision point: Will price break below 2.42, confirming further downside, or reclaim 2.60-2.80 for a reversal attempt?
- Trader Psychology:
- Fear: Strong bearish momentum has kept buyers weak.
- Indecision: Price consolidating near 2.50 suggests uncertainty.
Conclusion & Potential Scenarios:
- Bearish Case: A breakdown below 2.42 would confirm further downside, potentially testing 2.30-2.20.
- Bullish Case: A strong breakout above 2.60-2.80 with volume could signal trend reversal and a move toward 3.00-3.20.
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.
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