PropNex - 26 Feb 2025

PropNex (OYY, SGX), 1D timeframe:

1. Trend Analysis:

• Current Trend: The stock was in a downtrend from mid-2023 until late 2023, where it bottomed around 0.76 SGD. Since then, it has been in a strong uptrend, making a series of higher highs and higher lows.
• Recent Higher Highs & Lows:
  • Higher highs: 1.10, 1.15
  • Higher lows: 0.79, 0.83, 0.89, 0.97, 1.08
• Trend Strength:
  • The steep rally from 0.76 to 1.15 indicates strong bullish momentum.
  • However, recent price action shows some overlapping bars near 1.15, which could suggest trend exhaustion or consolidation.

2. Key Price Action Signals:

• Strong Trend Bars:
  • The move from 0.80 to 1.15 had multiple large bullish trend bars with strong closes, indicating aggressive buying.
  • Most strong bars had follow-through, confirming bullish dominance.
• Reversal Bars:
  • The spike to 1.25 (May 2023) followed by a sharp sell-off suggests that 1.25 is a strong resistance.
  • Bearish engulfing bars appear near 1.10 and 1.15, hinting at potential selling pressure.
• Inside Bars:
  • Several inside bars appear around 0.95 and 1.08, indicating brief consolidations before breakout.
• Doji Bars Context:
  • Doji near 1.08 (earlier in the trend) acted as a continuation pattern.
  • A recent doji near 1.15 might signal indecision or trend reversal.

3. Support & Resistance Levels:

• Major Support:
  • 0.76 (recent bottom)
  • 0.85-0.89 (prior resistance turned support)
  • 0.97-1.00 (psychological level)
• Major Resistance:
  • 1.10-1.15 (current resistance)
  • 1.25 (historical resistance, last major sell-off zone)

4. Breakout & Pullback Analysis:

• Breakouts:
  • The break above 0.97 was strong, followed by a rally to 1.15.
  • However, the breakout near 1.15 lacks strong momentum, showing wicks and smaller bars, suggesting potential failure.
• Pullbacks:
  • Shallow pullbacks at 0.97 and 1.08 suggest strong demand.
  • A deeper pullback to 1.00 or 0.97 would be healthier before the next move.

5. Market Context & Trading Bias:

• Current Market State:
  • The stock is in an uptrend but nearing resistance.
  • Signs of trend exhaustion at 1.15 could indicate profit-taking or consolidation.
• Trader Psychology:
  • Early buyers (below 0.80) are sitting on profits.
  • New buyers at 1.15 face risk if the breakout fails.
  • If the stock breaks 1.15 with strong volume, expect continuation toward 1.25.
  • If it rejects 1.15 and breaks 1.08, a deeper pullback to 1.00 or lower is likely.

Conclusion & Possible Trade Scenarios:

1. Bullish Case: A strong breakout above 1.15 with volume → Expect 1.20-1.25 as the next resistance.
2. Bearish Case: A rejection at 1.15, followed by a drop below 1.08 → Look for a retracement to 1.00 or 0.97 before re-entry.
3. Neutral/Range-Bound: If price chops between 1.08 and 1.15, the market is waiting for a catalyst.

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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