Technical Analysis of Food Empire (F03) on SGX (Daily Chart)
1. Trend Analysis
- Current Trend: Strong uptrend
- Higher Highs & Higher Lows:
- Recent higher lows: 0.95, 0.96, 1.00, 1.02
- Recent higher highs: 1.03, 1.06, 1.21+ (latest breakout)
- Trend Strength & Weakness:
- The stock recently broke above the 1.10–1.20 range, showing strong momentum.
- Large green bars suggest strong buying interest.
- No major counter-trend moves are visible, indicating bullish continuation.
2. Key Price Action Signals
- Strong Trend Bars:
- The recent bullish breakout above 1.10 came with strong volume, confirming trend strength.
- Reversal Patterns:
- No clear reversal signs yet.
- The stock has not formed bearish engulfing or pin bars, which suggests momentum is intact.
- Consolidation Signals:
- Prior to the breakout, price was consolidating between 0.96–1.02 before pushing higher.
3. Support & Resistance Levels
- Support Levels:
- 1.10: The breakout zone – likely to act as new support.
- 1.00–1.02: Previous resistance, now a key demand zone.
- 0.96–0.98: Long-term support where buyers have previously stepped in.
- Resistance Levels:
- 1.30 – 1.37: Previous swing highs in March-May 2024.
- 1.44: A key resistance where price previously reversed.
- 1.47: Highest historical level seen in the last year.
4. Breakout & Pullback Analysis
- Breakout Strength:
- The breakout from 1.02 to 1.21 was explosive, showing strong bullish conviction.
- Volume increased significantly, confirming demand.
- Pullback Opportunities:
- A healthy pullback to 1.10 or 1.15 could offer re-entry opportunities before another move higher.
5. Market Context & Trading Bias
- Stock Status: Trending higher after a long accumulation phase.
- Potential Trend Shift: If the stock fails to hold 1.10, it could indicate weakening momentum.
- Trader Psychology:
- Fear of missing out (FOMO) could drive more buyers in the short term.
- If volume remains strong, buyers will likely continue pushing price toward 1.30+ levels.
6. Supply & Demand & Liquidity Analysis
- Strong Demand Zones:
- 1.00–1.02: Previous resistance turned into support.
- 1.10: The breakout area that should hold for continued upside.
- Liquidity Traps:
- A sudden drop below 1.10 with heavy selling could indicate a bull trap.
7. Risk Management Strategy
- Entry Points:
- Ideal pullback buy: 1.10 – 1.15
- Momentum entry: Above 1.22 if price keeps pushing higher.
- Stop-Loss:
- Below 1.08 (prior breakout level).
- Profit Targets:
- Short-term: 1.30 – 1.37
- Long-term: 1.44 – 1.47
Conclusion:
✅ Bullish Bias – The stock is in a strong uptrend, breaking out of previous resistance levels with strong momentum and volume.
🔸 Best Trade Setup: Look for pullbacks to 1.10–1.15 as a potential buy opportunity, with a stop below 1.08.
⚠️ Watch Out For: A sudden reversal with high volume that could signal a fake breakout.
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: 4.20%
No comments:
Post a Comment