Technical Analysis of Hong Leong Finance (S41) – 1D Chart (SGX)
1. Trend Analysis
✅ Current Trend: Uptrend
- The stock is currently in an uptrend, as seen in the recent higher highs (HH) and higher lows (HL).
- The most recent higher highs (HH) and higher lows (HL):
- HH: 2.57 (May 2024) → 2.54 (May 2024) → 2.53 (March 2025)
- HL: 2.45 (Nov 2024) → 2.47 (Sep 2024) → 2.50 (Feb 2025)
- Signs of trend weakening:
- Some overlapping bars with wicks indicate profit-taking or market hesitation.
- However, price remains above previous swing lows, confirming the uptrend.
2. Key Price Action Signals
📈 Bullish Signals:
- Strong Bull Trend Bars: Large green candles (e.g., May 2024 and Feb-March 2025) show strong buying pressure.
- Reversal Patterns:
- Double Bottom Formation (Jul-Aug 2024) at 2.39-2.40, leading to an upward trend.
- Breakout from consolidation (Feb 2025) at 2.50, confirming the uptrend.
⚠️ Bearish Signals:
- Rejection at 2.57 (May 2024): Strong rejection suggests supply at this level.
- Doji Bars (March 2025 at 2.53): A sign of potential short-term consolidation or trend pause.
3. Support & Resistance Levels
🔵 Support Levels:
- 2.50: Recent breakout level (Feb 2025), now acting as support.
- 2.45-2.47: Strong demand zone (multiple bounces).
- 2.40: Previous bottom (Jul-Aug 2024), critical for trend confirmation.
🔴 Resistance Levels:
- 2.53-2.54: Recent swing high and psychological resistance.
- 2.57: Multi-month high (May 2024), a critical breakout level.
4. Breakout & Pullback Analysis
📊 Breakout Strength:
- Breakout from 2.50 level (Feb 2025) with volume suggests continued buying interest.
- If price closes above 2.53-2.54, it may test 2.57 again.
📉 Pullback Behavior:
- Healthy pullbacks to 2.50 should hold for continuation.
- If price falls below 2.50, expect a test of 2.45.
5. Market Context & Trading Bias
🔍 Market Condition:
- Trending stock with recent breakout signals.
- Bullish bias unless 2.50 support fails.
👀 Price Action Clues:
- Sellers present at 2.53-2.54, but no strong rejection yet.
- If price consolidates above 2.50, expect higher highs.
💡 Trader Sentiment:
- Buyers showing confidence with strong trend bars.
- Some hesitation near resistance, leading to short-term indecision.
6. Supply & Demand & Liquidity Analysis
🔵 Demand Zones:
- 2.45-2.50: Buyers stepping in at these levels.
- 2.40: Strong historical demand area.
🔴 Supply Zones:
- 2.53-2.57: Historical supply zone where sellers have been active.
📊 Volume Analysis:
- High volume on breakouts = strong buyer conviction.
- Low volume on pullbacks = healthy corrections.
7. Risk Management Strategy
📌 Entry:
- Buy above 2.52-2.53 for a continuation towards 2.57.
- Pullback entry at 2.50 (stop loss below 2.47).
📉 Stop-Loss:
- Below 2.47 (invalidates bullish setup).
🎯 Profit Target:
- Short-term: 2.53-2.54
- Medium-term: 2.57
📊 Summary & Trading Plan
✅ Bullish Bias Above 2.50
- Buy above 2.52 for a breakout trade.
- Hold if price stays above 2.50.
- Sell if price closes below 2.47.
🔔 Final Thoughts:
- Strong trend but watch for resistance at 2.53-2.57.
- Healthy pullbacks are expected.
- Volume is key—look for strong buying follow-through.
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: 5.08%
No comments:
Post a Comment