Mapletree Ind - 07 Feb 2025

Price Action Analysis for ME8U (Mapletree Industrial Trust)

1. Trend Analysis

• Primary Trend: The chart shows a downtrend from 2021 to early 2024, with lower highs and lower lows forming consistently.
• Recent Highs/Lows: The last significant lower high was around 2.59 in late 2023, followed by a lower low at 2.10 in early 2024.
• Trend Weakening? Some short-term rallies occur (e.g., mid-2023 and early 2024), but they fail to sustain, leading to further decline.

2. Key Price Action Signals

• Strong Trend Bars: Downward movements (red bars) often have strong follow-through, confirming bearish momentum.
• Reversal Bars: Some bullish reversals (green bars) appear near key support levels (e.g., 2.12, 2.18, 2.17), but they struggle to sustain.
• Inside Bars & Consolidation: Sideways movement seen around 2.20–2.25, showing a temporary balance between buyers and sellers.
• Doji Bars: Appear frequently at turning points, signaling indecision before trend continuation.

3. Support & Resistance Levels

• Support Levels:
  • 2.10 - 2.12 (Recent lows, tested multiple times)
  • 2.17 - 2.18 (Short-term bounce points)
• Resistance Levels:
  • 2.30 - 2.35 (Recent rejection zone)
  • 2.55 - 2.59 (Last significant high before falling further)

4. Breakout & Pullback Analysis

• Breakouts:
  • Many breakdowns occur after small consolidations, confirming the downtrend.
  • Weak bullish breakouts that fail at resistance (e.g., 2.55, 2.30).
• Pullbacks: Short-lived bullish rallies that lead to further selling, indicating a strong downtrend with brief relief rallies.

5. Market Context & Trading Bias

• Current Market Condition: Bearish, with occasional rebounds.
• Potential Trend Change? Watch if 2.10 support holds; a break below could continue the downtrend, while a break above 2.30–2.35 could signal recovery.
• Trader Psychology: Fear and bearish sentiment dominate, with traders selling rallies rather than holding long positions.

Conclusion

• Bearish Bias: Until key resistance levels (2.30–2.35) are broken, the downtrend remains intact.
• Possible Play: Watch for bounce trades at 2.10–2.12 or breakout trades above 2.35 for potential trend shifts.

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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