Sunday, February 23, 2025

ComfortDelGro - 21 Feb 2025

Stock Analysis: ComfortDelGro (C52) – Daily Chart (SGX)

1. Trend Analysis:

  • Trend Direction: The market initially showed an uptrend from mid-2023 until early 2024, with higher highs (HH) and higher lows (HL). However, after peaking at 1.53, the price started to decline, forming lower highs and lower lows, suggesting a potential downtrend or at least a correction.
  • Recent Price Action:
    • The most recent lower high: 1.48
    • The most recent lower low: 1.36 (current level)
  • Signs of Trend Weakening:
    • The price is struggling to make new highs.
    • Overlapping bars indicate indecision or potential trend exhaustion.
    • Larger bearish candles with strong closes suggest sellers gaining control.

2. Key Price Action Signals:

  • Strong Trend Bars:
    • The strong bullish move to 1.50 had follow-through, but after reaching 1.53, the price faced resistance and reversed.
    • Recent bearish trend bars with strong closes indicate selling pressure.
  • Reversal Bars:
    • The rejection at 1.50–1.53 suggests supply zones where sellers stepped in.
    • Several small-bodied candles indicate hesitation and lack of momentum.
  • Inside Bars & Consolidation:
    • Inside bars appeared before the breakdown from 1.42, signaling a bearish breakout.
  • Dojis:
    • A few dojis appear around 1.42–1.45, showing temporary equilibrium before the recent decline.

3. Support & Resistance Levels:

  • Major Resistance: 1.50 – 1.53 (Key swing high, strong supply zone)
  • Intermediate Resistance: 1.42 – 1.45 (Prior consolidation area)
  • Major Support: 1.32 – 1.36 (Previous lows, current test zone)

4. Breakout & Pullback Analysis:

  • The breakout from 1.42 was a bearish move with follow-through, suggesting a shift in control to sellers.
  • The current pullback to 1.36 is crucial. If it holds, buyers may attempt a reversal. If it breaks, 1.32–1.30 could be tested.
  • The retest of 1.42 (previous support-turned-resistance) was rejected, confirming bearish sentiment.

5. Market Context & Trading Bias:

  • Current Market Phase: Transitioning from uptrend to possible downtrend.
  • Potential Trend Change Signals: If price forms a higher low above 1.32 and breaks back above 1.42, a recovery is possible.
  • Trader Psychology:
    • Sellers in control as price rejects previous support levels.
    • Buyers may step in at key support levels, but conviction remains weak.
    • If 1.36 fails, more selling could push price lower.

Conclusion:

  • Bearish Bias: Price is in a corrective phase with selling pressure dominating.
  • Watch for:
    • A bounce from 1.36 for potential support.
    • A break below 1.36 for continuation toward 1.32–1.30.
    • Signs of reversal (strong bullish bars, volume increase) before considering long positions.

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:   5.35%



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