Multi-Chem - 21 Mar 2025

Multi-Chem (AWZ) - Daily Chart Analysis (SGX)

1. Trend Analysis

• Primary Trend: Uptrend

• Recent Higher Highs & Lows:

  • Higher highs at 3.10 → 2.91 → 2.90 → 3.31 → 3.55

  • Higher lows at 2.35 → 2.67 → 2.70 → 2.73 → 3.20

• Trend Strength: Strong uptrend, but minor consolidation around 3.20 - 3.31

• Signs of Weakening:

  • Some smaller candles with overlapping wicks (possible consolidation).

  • Resistance at 3.31 and 3.55 where price previously rejected.

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2. Key Price Action Signals

• Strong Trend Bars:

  • Sharp breakout on high volume from 2.87 to 3.55, indicating strong demand.

  • Bullish momentum after crossing 3.00 psychological level.

• Reversal Patterns:

  • Possible rejection at 3.55 (long wick and retracement).

  • Price action forming higher lows, confirming sustained demand.

• Inside Bars & Doji Signals:

  • Several small-bodied candles near 3.20 - 3.31 range, signaling indecision.

• Volume Spikes & Anomalies:

  • Significant volume surge on the 3.55 breakout attempt (potential breakout failure).

  • Current volume has reduced, indicating a potential pause before the next move.

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3. Support & Resistance Levels

• Key Support Levels:

  • 3.20 (current price, tested multiple times).

  • 2.87 - 2.90 (prior resistance turned support).

  • 2.68 - 2.70 (strong swing low area).

• Key Resistance Levels:

  • 3.31 (recent rejection).

  • 3.55 (strong supply zone; failed breakout).

  • 3.60+ (potential breakout zone if volume confirms).

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4. Breakout & Pullback Analysis

• Breakout Strength:

  • The 3.55 breakout failed, resulting in a retracement.

  • Price now consolidating around 3.20.

• Pullback Patterns:

  • Price pulled back from 3.55 to 3.20, testing demand.

  • Holding above 3.20 suggests bullish continuation is possible.

  • A breakdown below 3.20 may lead to a test of 2.90 support.

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5. Market Context & Trading Bias

• Current Phase: Uptrend with consolidation.

• Potential Trend Shift?: If price fails to reclaim 3.31, a deeper correction may happen.

• Trader Psychology:

  • Breakout traders trapped at 3.55 may exit if price fails to push higher.

  • Buyers defending 3.20, but if demand weakens, a pullback to 2.90 is possible.

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6. Supply, Demand & Liquidity Analysis

• Supply/Demand Observations:

  • Strong demand around 3.20 as buyers step in.

  • Liquidity is thinning near 3.55, leading to a false breakout.

• Potential Trade Setups:

  • Bullish: Long near 3.20 with stop below 3.10 and targets at 3.31 and 3.55.

  • Bearish: If price closes below 3.20, short to 2.90 - 2.70 support zones.

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7. Risk Management Strategy

• Bullish Entry: Near 3.20, stop at 3.10, target 3.31 → 3.55.

• Bearish Entry: Below 3.20, stop at 3.31, target 2.90 → 2.70.

• Breakout Confirmation: Only enter above 3.31 if volume increases.

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Final Summary

• Trend: Uptrend but currently in consolidation between 3.20 - 3.31.

• Key Resistance: 3.31 and 3.55.

• Key Support: 3.20 and 2.90.

• Bias: Bullish above 3.20, bearish below it.

• Next Move: If price breaks above 3.31, next test is 3.55.

  • If it breaks below 3.20, a pullback to 2.90 is likely.

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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