Technical Analysis of FOOD EMPIRE (F03.SGX) – Daily Chart
1. Trend Analysis
✅ Current Trend: Uptrend
- The stock has broken out of a long consolidation phase and is making higher highs (HH) and higher lows (HL).
- Recent Higher Highs: 1.38 (Current), 1.37 (March), 1.33 (April).
- Recent Higher Lows: 1.12 (February), 1.08 (May), 0.96 (August).
- Bullish Momentum: Strong rally with multiple large green candles, indicating sustained buying pressure.
- No significant counter-trend movements, but possible profit-taking in the future.
2. Key Price Action Signals
📌 Strong Trend Bars:
- The latest candles show large bullish bars with strong closes, indicating aggressive buying.
- A breakout move has occurred from 1.00 to 1.38, confirming strong upside momentum.
- Little to no wick on bullish candles → buying pressure remains strong.
📌 Reversal Patterns:
- Prior downtrend in 2024 saw a double-bottom formation at 0.95-0.96 (Aug & Dec), followed by a steady rise.
- The break of 1.00 psychological resistance in February 2025 was key for the bullish reversal.
📌 Inside Bars & Doji Bars:
- Minimal consolidation recently, showing a parabolic move.
- A doji may appear soon if buyers hesitate at current levels.
3. Support & Resistance Levels
🔵 Key Support Levels:
- 1.30-1.32 (Recent breakout level, could act as support)
- 1.00-1.02 (Psychological support & former resistance)
- 0.96-0.98 (Historical demand zone from 2024)
🔴 Key Resistance Levels:
- 1.40-1.44 (Last major resistance from early 2024)
- 1.47 (Potential target if rally continues)
4. Breakout & Pullback Analysis
📈 Breakout Strength:
- The breakout above 1.02 and 1.30 was strong, with high volume and little resistance.
- High momentum breakout → implies further upside potential unless a pullback occurs.
📉 Pullback Possibility:
- If profit-taking happens, expect a pullback to 1.30 or 1.20 before resuming uptrend.
- Look for bullish rejection wicks at support zones for buy-the-dip opportunities.
5. Market Context & Trading Bias
📊 Current Market Condition: Trending Up
- The stock has shifted from a long consolidation into a strong bullish breakout.
- Traders’ Sentiment: Strong buying, limited selling pressure so far.
💡 Potential Trend Shift Clues:
- If a bearish engulfing candle forms near 1.40, it could signal short-term exhaustion.
- A break below 1.30 would weaken the bullish bias.
6. Supply & Demand & Liquidity Analysis
🏦 Demand Zones:
- 1.00-1.02: Strong buying in February 2025.
- 1.30-1.32: Recent breakout zone, now acting as demand.
🚨 Liquidity Traps:
- Late buyers near 1.38-1.40 might face risk if momentum slows.
- If sellers push below 1.30, stop-losses may trigger a drop toward 1.20.
7. Risk Management Strategy
📌 Entry Strategy:
- Breakout Traders: Consider entries on break above 1.40 with stop-loss at 1.30.
- Pullback Buyers: Look for retracement to 1.30 or 1.20 for a better risk/reward trade.
📌 Stop-Loss & Take-Profit:
- Stop-Loss: Below 1.30 (breakout support) or 1.20 (stronger support).
- Take-Profit: 1.44-1.47 (previous resistance zone).
📌 Risk/Reward Consideration:
- Buying near 1.30 offers a 3:1 risk/reward toward 1.47.
- Buying near 1.38 is riskier unless momentum continues.
Final Thoughts:
🚀 Bullish Bias
- Trend is strong, buyers in control.
- Watch 1.40-1.44 as a key resistance zone.
- Best entries on pullbacks rather than chasing highs.
⚠️ Warning for Late Buyers:
- If price fails to hold 1.30, it could signal exhaustion.
- Avoid chasing unless new bullish confirmations appear.
📊 Verdict: Bullish, but expect pullbacks before higher moves.
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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