Delfi - 17 Mar 2025

Stock Analysis: Delfi Limited (SGX: P34) – 1D Chart Review

1. Trend Analysis

• Overall Trend: The stock is in a downtrend, with clear lower highs and lower lows since mid-2023.
• Lower Highs & Lower Lows:
  • Lower highs: 1.390 → 1.320 → 1.170 → 1.130 → 0.960
  • Lower lows: 1.050 → 1.120 → 1.030 → 0.885 → 0.725
• Trend Weakness?
  • Recently, price action has started stabilizing between 0.725 and 0.800.
  • Consolidation with overlapping bars suggests possible trend exhaustion.

2. Key Price Action Signals

• Strong Trend Bars:
  • The price had a sharp drop from 1.130 to 0.960, indicating strong selling pressure.
  • Another key bearish move was from 1.040 to 0.885.
• Reversal Signals:
  • A double bottom near 0.725–0.755 hints at a possible bounce.
  • Some long lower wicks suggest buyers are stepping in.
• Inside Bars & Doji Patterns:
  • Consolidation between 0.755 and 0.800 shows indecision.

3. Support & Resistance Levels

• Major Resistance:
  • 0.800 (psychological resistance)
  • 0.880–0.900 (previous breakdown level)
  • 1.040 (major breakdown level)
• Major Support:
  • 0.725 (recent swing low)
  • 0.770–0.780 (local support area)

4. Breakout & Pullback Analysis

• Weak Breakouts:
  • Past breakouts failed to hold above resistance levels (e.g., 1.130 → 0.960).
• Potential Pullbacks:
  • If the price breaks above 0.800, it may test 0.880.
  • If it fails, it could retest 0.725 or drop lower.

5. Market Context & Trading Bias

• Bias: Bearish-to-Neutral
  • While the stock has been in a long downtrend, the recent consolidation suggests possible accumulation.
  • Needs a strong breakout above 0.800 for confirmation of trend reversal.
• Trader Psychology:
  • Buyers are attempting to defend 0.725–0.755.
  • Sellers remain in control unless price reclaims 0.880+.

6. Supply & Demand & Liquidity Analysis

• Supply Zone:
  • 0.880–0.960 (heavy selling pressure area).
• Demand Zone:
  • 0.725–0.755 (buyers showing interest).
• Volume Consideration:
  • Increasing volume on dips suggests accumulation.
  • Breakout with volume above 0.800 could trigger buying momentum.

7. Risk Management Strategy

• Entry:
  • Bullish: If price breaks above 0.800 with volume, target 0.880.
  • Bearish: If price fails at 0.800, short with a target of 0.725.
• Stop-Loss:
  • For longs: Below 0.750.
  • For shorts: Above 0.820.
• Profit Targets:
  • 0.880 (short-term resistance)
  • 1.040 (major trend reversal point)

Final Thoughts

• Current Trend: Downtrend but stabilizing.
• Potential Setup: Watch for a breakout above 0.800 or rejection for shorting.
• Risk Management: Use stop-losses to minimize downside risk.

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:   6.64%