Hong Leong Asia - 27 Mar 2025

Stock Analysis: Hong Leong Asia (H22) - SGX | 1D Chart Analysis 

1. Trend Analysis

• Current Trend: Strong Uptrend

• Higher Highs & Higher Lows:

  • Price consistently formed higher highs (HH) and higher lows (HL) since mid-2023.

  • Recent HH at 1.11, followed by a breakout to 1.21.

  • HL around 0.90, suggesting strong bullish momentum.

• Trend Strength:

  • Large bullish bars indicate momentum.

  • Strong breakout above 1.11 shows trend continuation.

  • Volume spike confirms institutional buying.

2. Key Price Action Signals

• Strong Trend Bars & Follow-Through:

  • The recent bullish breakout bar (March 27, 2025) is large and closes near the high → strong buying pressure.

  • Previous minor resistance at 1.11 was broken decisively.

• Reversal Patterns:

  • No major bearish reversal signals yet (e.g., pin bars, engulfing candles).

• Inside & Doji Bars:

  • Some consolidation around 0.90 – 1.00, forming basing structure before breakout.

• Volume Spikes & Price Reaction:

  • Today’s candle shows a high volume breakout above 1.11, confirming buying strength.

3. Support & Resistance Levels

• Support Zones:

  • 0.90 – 1.00 (previous accumulation zone).

  • 0.75 – 0.80 (prior swing lows).

• Resistance Zones:

  • 1.25 – 1.30 (potential next resistance if uptrend continues).

  • 1.50 (psychological level).

4. Breakout & Pullback Analysis

• Breakout Strength:

  • Strong breakout above 1.11 with volume support.

  • No rejection wick → signals further upside potential.

• Pullback Potential:

  • A retest of 1.11 could provide a buying opportunity.

  • If price holds above 1.15, continuation likely.

5. Market Context & Trading Bias

• Market Structure:

  • Trending bullish with strong momentum.

  • Institutional participation evident via volume spikes.

• Trader Psychology:

  • Fear of missing out (FOMO) likely driving price up.

  • No significant selling pressure yet.

6. Supply, Demand & Liquidity Analysis

• Supply Zones:

  • Limited selling pressure above 1.21 for now.

• Demand Zones:

  • Strong demand at 1.00 – 1.11 zone, confirmed by accumulation.

7. Risk Management & Trade Setup

• Potential Entry:

  • Breakout buy above 1.11, entry 1.15 – 1.20.

• Stop Loss:

  • Below 1.10 (previous resistance turned support).

• Profit Target:

  • 1.25 – 1.30 (short-term).

  • 1.50 (longer-term bullish case).

Conclusion

• Bias: Bullish

• Confirmation: Strong breakout, volume increase, and no rejection wicks.

• Watch for: Retest of 1.11 – 1.15 for potential continuation.

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:  2.48