Thursday, February 20, 2025

Raffles Medical - 20 Feb 2025

Raffles Medical Group (SGX: BSL)


1. Trend Analysis:

  • Primary Trend: Downtrend
    • The stock has been in a persistent decline since mid-2023, with lower highs and lower lows.
    • The major price drop from around 1.40 SGD to 0.830 SGD confirms the bearish structure.
  • Recent Swing Points:
    • Lower highs: 1.27, 1.26, 1.21, 1.10, 1.07, 1.05, 0.93, 0.89, 0.85
    • Lower lows: 1.01, 0.985, 0.965, 0.865, 0.825
  • Trend Weakening?
    • Recently, price has been consolidating near the 0.825 - 0.850 range, showing potential support.
    • Decreasing volatility suggests sellers might be exhausted, but there is no strong bullish reversal yet.

2. Key Price Action Signals:

  • Strong Trend Bars:
    • The large bearish bar in November 2023 showed strong selling momentum. However, follow-through has been weak.
  • Reversal Signals:
    • Price attempted a double bottom at 0.825, which could act as support.
    • However, there is no clear bullish engulfing or strong pin bar indicating an immediate reversal.
  • Inside Bars & Dojis:
    • Multiple inside bars around 0.850 - 0.825 indicate consolidation.
    • A breakout from this range could determine the next major move.

3. Support & Resistance Levels:

  • Major Resistance: 0.85, 0.89, 0.93, 1.00
  • Major Support: 0.825, 0.865, 0.88
  • Price is currently near a multi-month support zone (0.825 - 0.850). A break below could lead to further selling.

4. Breakout & Pullback Analysis:

  • Breakout Strength: Weak
    • Recent breakouts have had long wicks, indicating rejection and lack of follow-through.
  • Pullbacks:
    • Minor bullish pullbacks were met with selling pressure, confirming the downtrend.
    • No significant bull flag formation, but price is compressing, suggesting an impending move.

5. Market Context & Trading Bias:

  • Current Market Structure: Ranging within a larger downtrend.
  • Potential Trend Change?
    • Signs of seller exhaustion: Price is holding at a key support zone, but there’s no strong bullish confirmation.
    • If price breaks above 0.85 with strong momentum, it could signal a short-term reversal.
  • Trader Psychology:
    • Fear & uncertainty: Many traders are cautious after the prolonged downtrend.
    • Indecision: The recent consolidation suggests neither buyers nor sellers are in full control.

Conclusion:

  • Bearish Bias remains unless price breaks above 0.85 with strong momentum.
  • Watch for a breakout from the 0.825 - 0.850 range to confirm the next move.
  • A breakdown below 0.825 could lead to further selling pressure, while a strong bullish candle above 0.85 may attract buyers.

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:   2.91%



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