YZJ Shipping - 11 Feb 2025

Price Action Analysis of YZJ Shipbuilding (SGX) Stock (BS6)

1. Trend Analysis:

• Uptrend Confirmation: The stock has been in a clear uptrend since mid-2022, consistently making higher highs and higher lows.
• Most Recent Highs & Lows:
  • Higher highs: 3.14 (recent peak), 2.75, 2.53, 1.94
  • Higher lows: 2.85, 2.42, 2.30, 1.69
• Trend Weakening?
  • While the trend remains strong, some consolidation near 3.00 SGD suggests potential resistance.
  • Smaller candles & overlapping bars indicate a possible slowdown in momentum.

2. Key Price Action Signals:

• Strong Trend Bars: Large green candles, particularly after breakouts near 2.42 and 2.75, show strong bullish momentum.
• Reversal Signals:
  • Pin bars and small-bodied candles near 3.14 suggest profit-taking or resistance.
  • Bearish engulfing pattern near 3.14 hints at a potential short-term pullback.
• Inside Bars & Consolidation:
  • Multiple inside bars near 2.75 - 2.85 indicate indecision before breaking higher.
• Doji Bars:
  • Found near 3.00, which could signal an upcoming trend reversal or continuation.

3. Support & Resistance Levels:

• Major Resistance:
  • 3.14 (Recent High)
  • 2.75-2.85 (Previous consolidation zone)
• Major Support:
  • 2.42-2.47 (Previous breakout level)
  • 2.30 (Last higher low)
  • 1.90-1.94 (Old swing high, now support)

4. Breakout & Pullback Analysis:

• Breakouts:
  • The breakout past 2.75 was strong, supported by large volume.
  • The move beyond 3.00 showed weak follow-through, indicating possible exhaustion.
• Pullbacks:
  • Pullbacks to 2.85 and 2.42 have been shallow, suggesting strong buying interest.
  • A deeper pullback toward 2.75 or 2.42 could be a better re-entry point for bulls.

5. Market Context & Trading Bias:

• Overall Bias: Bullish, but the stock is facing near-term resistance.
• Possible Trend Change?
  • If the stock fails to hold above 2.85, it may signal a deeper correction.
  • A break above 3.14 would confirm continued bullish momentum.
• Trader Psychology:
  • Bulls are in control, but hesitation at 3.00+ suggests some profit-taking.
  • Breakout traders may be watching 3.14 for confirmation.
  • Buy-the-dip traders might wait for a retest of 2.75 - 2.85.

Final Thoughts:

• Bullish above 2.85, with potential targets at 3.14+.
• Bearish if price breaks below 2.75, which could lead to a deeper retracement toward 2.42.
• Watch for volume confirmation at breakout levels.

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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