Q&M Dental - 27 Feb 2025

Q&M Dental (QC7) on the 1D timeframe:

1. Trend Analysis

• Overall Trend: The stock has been in a broad trading range since mid-2023, with price oscillating between ~0.220 SGD (support) and ~0.320 SGD (resistance).
• Recent Structure:
  • A downtrend was observed from October 2023 to November 2023, with lower highs and lower lows.
  • Price bottomed out around 0.220 in late 2023, forming a double bottom.
  • From March 2024 onward, price has been gradually making higher lows (~0.225, ~0.235, ~0.245, ~0.270), indicating a shift towards an uptrend.
  • The most recent higher high was 0.320 (January 2025), but price has since retraced.
  • Currently, price is bouncing off support (~0.275) and making another push towards resistance (~0.295-0.310).
• Trend Weakening?
  • The trend is not very strong, as seen by small trend bars and overlapping candles.
  • Momentum appears mixed, with strong bullish breakouts being followed by quick retracements.

2. Key Price Action Signals

• Strong Trend Bars & Follow-Through:
  • July 2024 & Jan 2025: Strong bullish bars showed sharp upward movement, breaking previous highs.
  • However, after 0.320 (Jan 2025), sellers rejected the move, leading to consolidation.
• Reversal Bars:
  • The recent high 0.320 (Jan 2025) formed a bearish reversal, suggesting seller dominance at that level.
  • Multiple bullish rejection wicks around 0.275-0.280 suggest strong demand at this area.
• Inside Bars & Breakouts:
  • Several inside bars in August, October, and November 2024, indicating consolidation.
  • Recent price action shows a breakout attempt above 0.290.
• Doji Bars:
  • There are some dojis near support (~0.275), suggesting indecision but also possible accumulation.

3. Support & Resistance Levels

• Major Support Levels:
  • 0.220 (Long-term support, double bottom)
  • 0.235-0.245 (Intermediate support)
  • 0.275 (Recent support and bounce level)
• Major Resistance Levels:
  • 0.295-0.310 (Recent swing highs)
  • 0.320 (Major resistance – previous high before rejection)
  • 0.265 (Previous support, now potential resistance)

4. Breakout & Pullback Analysis

• Breakouts:
  • Strong breakout in July 2024 and January 2025, but both faced immediate rejections.
  • Recent breakout above 0.290 seems weak, as price stalled.
• Pullbacks:
  • Price pulled back multiple times to 0.275, confirming it as a strong demand zone.
  • If price fails to hold 0.275, we may see another retest of 0.265 or 0.245.

5. Market Context & Trading Bias

• Current Trend:
  • Market is currently ranging but leaning bullish as long as price holds above 0.275.
• Potential Trend Change?
  • If price breaks above 0.295-0.310 with strong volume, it could signal a trend continuation.
  • A break below 0.275 could indicate sellers gaining control, leading to lower prices.
• Trader Psychology:
  • Buyers are stepping in at key support levels (~0.275), suggesting accumulation.
  • The rejection at 0.320 suggests sellers are still strong, meaning a breakout needs conviction.
  • Current indecision suggests waiting for a strong move before taking directional trades.

Conclusion & Trade Outlook

• Bullish case: If price holds above 0.275 and breaks 0.310, it could target 0.320 and beyond.
• Bearish case: If price rejects 0.295 and drops below 0.275, expect a move back to 0.265 or lower.
• Best approach: Wait for breakout confirmation or buy dips near 0.275 with a stop below 0.265.

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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