Global Testing - 12 Mar 2025

Technical Analysis of GLOBAL TESTING (SGX: AYN) - Daily Chart

1. Trend Analysis

• Current Trend: The stock has been in a downtrend from mid-2023 to early 2024, with lower highs and lower lows. However, a recent uptrend started from early 2024.
• Recent Structure:
  • Downtrend: Lower highs of 1.37 → 1.32 → 1.21 → 1.13 with corresponding lower lows.
  • Trend Shift: Price found support around 0.79 - 0.80 and has been climbing since early 2024.
  • Uptrend Signs: Recent higher lows at 0.84 → 0.90 → 0.93 and higher highs at 1.00 → 1.08 → 1.06.
  • Potential Weakness? Some bars have long wicks, indicating profit-taking or selling pressure.

2. Key Price Action Signals

• Strong Trend Bars:
  • Recent bullish bars with strong closes near highs, confirming buying pressure.
  • The breakout above 1.00 was accompanied by good momentum.
• Reversal Patterns:
  • A double bottom formation around 0.79 - 0.80, signaling a trend reversal.
  • Recent consolidation between 0.90 - 1.00 before breaking out.
• Doji Bars (Indecision): Some dojis and long-wick bars near 1.08, showing hesitation in further bullish continuation.

3. Support & Resistance Levels

• Support Zones:
  • 0.79 - 0.80 (Major support; bounce initiated from here).
  • 0.90 - 0.93 (Recent pullback levels).
  • 1.00 - 1.01 (Psychological round number and prior resistance-turned-support).
• Resistance Zones:
  • 1.08 (Recent high).
  • 1.13 - 1.20 (Previous lower high zone; potential resistance).
  • 1.32 - 1.37 (Major resistance from 2023).

4. Breakout & Pullback Analysis

• Breakouts:
  • The breakout above 1.00 was strong, followed by steady momentum.
  • A weaker breakout attempt at 1.08 (long upper wick indicates possible exhaustion).
• Pullbacks:
  • Pullback to 0.90 held as support.
  • Recent price movement suggests possible bullish flag formation.

5. Market Context & Trading Bias

• Current Market Phase: Transitioning from a downtrend to an uptrend.
• Potential Trend Shift?:
  • If the price stays above 1.00, a new bullish leg is likely.
  • A break above 1.08 - 1.13 could confirm bullish continuation.
  • Failure to hold above 1.00 could result in another bearish move.

6. Supply, Demand & Liquidity Analysis

• Buying Strength: Increasing volume in the recent rally suggests institutional interest.
• Selling Pressure: Selling near 1.08, leading to wicks and potential consolidation.

7. Risk Management & Trade Plan

• Bullish Trade Setup:

  • Entry: On pullback to 1.00 - 1.02 or breakout above 1.08.
  • Stop-loss: Below 0.98 (if buying pullback) or below 1.05 (if trading breakout).
  • Target: 1.13 - 1.20 for potential profit.

• Bearish Trade Setup:

  • Entry: If price fails to hold 1.00 and closes below 0.98.
  • Stop-loss: Above 1.06.
  • Target: 0.90 - 0.84.

Final Thoughts

• The recent uptrend is encouraging, but 1.08 - 1.13 is a key resistance zone.
• A strong breakout above 1.08 - 1.13 could signal further bullish momentum.
• Holding above 1.00 is critical for sustained bullish sentiment.

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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