Tuesday, March 18, 2025

LHN - 18 Mar 2025

Technical Analysis of LHN (41O) on SGX โ€“ Daily Chart (1D)

1. Trend Analysis

โœ… Trend Type: Uptrend (with recent pullback)

  • Uptrend Confirmed: Higher highs and higher lows from November 2024 to January 2025.
  • Recent Weakness: Price pulled back from 0.550 to 0.445, forming a lower low.
  • Potential Rebound: Currently bouncing back to 0.485 after testing support.
  • Trend Weakness Signs:
    • Price rejected from 0.550 twice (double top formation).
    • Increased volatility in Februaryโ€“March, signaling uncertainty.

2. Key Price Action Signals

๐Ÿ“‰ Bearish Rejection & Trend Bar Analysis

  • Strong Bullish Move (Novโ€“Jan 2025): Large green bars, minimal pullbacks.
  • Rejection from 0.550: Price attempted to break but faced selling pressure.
  • Recent Bearish Reversal:
    • Price fell from 0.550 โ†’ 0.445 (Strong bearish move).
    • Buyers stepped in at 0.445, forming support.
  • Current Bounce: 0.445 to 0.485 suggests demand at lower levels.

๐Ÿ“ Reversal Patterns

  • Pin Bar at 0.445: Rejection wick indicates buying interest.
  • Engulfing Bullish Bar: At 0.485, showing buyers regaining control.

๐Ÿ“Š Consolidation & Inside Bars

  • Sideways movement in mid-2024: 0.310 โ€“ 0.345 range.
  • Breakout from 0.370 in Nov 2024: Initiated the uptrend.

3. Support & Resistance Levels

๐Ÿ“Œ Major Support Zones:

  • 0.445: Strong recent support (March 2025).
  • 0.370 โ€“ 0.400: Previous breakout level from Nov 2024.

๐Ÿ“Œ Major Resistance Zones:

  • 0.485: Current level, acting as minor resistance.
  • 0.535 โ€“ 0.550: Key resistance (double top formation).
  • 0.560: Strongest resistance (last peak before pullback).

๐Ÿ“Š Key Observations:

  • If price breaks 0.485 with strength, it may target 0.535 โ€“ 0.550.
  • Failure to break above may lead to retest of 0.445.

4. Breakout & Pullback Analysis

๐Ÿ“ˆ Breakout Strength:

  • Break above 0.370 in Nov 2024 was strong (high volume).
  • Break above 0.485 will determine if the uptrend continues.

๐Ÿ“‰ Pullback Analysis:

  • Current retracement to 0.445 aligns with prior support zones.
  • If price holds above 0.445, the trend may continue up.

๐Ÿš€ Bullish Scenario:

  • Strong breakout above 0.485 โ†’ Potential rally to 0.535 โ€“ 0.550.

โš ๏ธ Bearish Scenario:

  • Rejection at 0.485 โ†’ Possible retest of 0.445.

5. Market Context & Trading Bias

โœ… Current Market Phase: Transitioning from correction to possible rebound.

  • Recent pullback suggests uncertainty, but demand appears near 0.445.
  • Trader Psychology: Buyers regaining confidence after panic selling in Feb.

๐Ÿ“Œ Trading Bias:

  • Bullish above 0.485 (confirmation needed).
  • Bearish if 0.445 breaks (further downside risk).

6. Supply & Demand & Liquidity Analysis

๐Ÿ“Š Volume Insights:

  • Increased volume during price drops = sellers exiting.
  • Volume increase at 0.445 = possible demand zone.

๐Ÿ›‘ Liquidity Zones:

  • 0.445 โ€“ 0.485: High liquidity (buyers absorbing selling pressure).
  • Above 0.535: Low liquidity, potential breakout.

7. Risk Management Strategy

๐Ÿ’ฐ Trade Setup: Pullback Buy & Breakout Play

๐Ÿ“Œ Bullish Trade Plan:

  • Entry: Above 0.485 (confirmation with strong bullish close).
  • Stop Loss: Below 0.470 (previous candle low).
  • Target 1: 0.535
  • Target 2: 0.550

๐Ÿ“Œ Bearish Trade Plan:

  • Entry: If rejection at 0.485, short below 0.470.
  • Stop Loss: Above 0.490.
  • Target: 0.445, then 0.400.

Final Summary

โœ… Overall Bias: Neutral-Bullish (Break above 0.485 needed for confirmation).
โš ๏ธ Risk Factors: Failure to break 0.485 may lead to more downside.
๐ŸŽฏ Key Levels:

  • Bullish Above: 0.485 (Targets 0.535 โ€“ 0.550)
  • Bearish Below: 0.470 (Targets 0.445 โ€“ 0.400)

๐Ÿ“ˆ Watch for Breakout Confirmation!


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%



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