SIA Eng - 03 Mar 2025

Stock Analysis: SIA Engineering (S59) – 1D Chart Analysis (SGX)

1. Trend Analysis:

• Market Condition: The stock is mostly in a range-bound market with oscillations between key resistance (~2.45) and support (~2.18).
• Higher Highs & Higher Lows:
  • Recent highs: 2.45, 2.49
  • Recent lows: 2.18, 2.19, 2.23
  • Price failed to break above 2.49, indicating strong resistance.
• Trend Weakness:
  • Several overlapping candles indicate market indecision.
  • Price rejections at resistance (2.45) and support (2.18) suggest lack of strong trend momentum.

2. Key Price Action Signals:

• Strong Trend Bars:
  • Some large bullish candles near 2.18 support, showing buyers stepping in.
  • No clear follow-through above resistance (2.45), signaling exhaustion.
• Reversal Bars:
  • Several bearish engulfing bars near 2.45 resistance, indicating strong selling pressure.
• Inside Bars & Consolidation:
  • Several inside bars around 2.31-2.35, indicating consolidation before the next move.
  • Watch for a breakout above 2.37 or a breakdown below 2.31.
• Doji Candles:
  • Multiple doji formations within the range (2.31-2.37) signal indecision.

3. Support & Resistance Levels:

• Major Resistance: 2.45 - 2.49 (tested multiple times, rejected).
• Major Support: 2.18 - 2.23 (held strongly with multiple bounces).
• Intermediate Levels: 2.31, 2.35 (price reacting frequently).

4. Breakout & Pullback Analysis:

• Breakout Strength:
  • No strong breakouts beyond 2.45 (resistance) or 2.18 (support).
  • Breakouts have long wicks, showing weak momentum.
• Pullback Structure:
  • Recent pullbacks from 2.45 suggest profit-taking and resistance.
  • Weak retracement towards 2.31 suggests possible continuation to the downside.

5. Market Context & Trading Bias:

• Current Trend: Ranging between 2.18 - 2.45.
• Signs of Trend Change:
  • If price breaks above 2.45 with volume, it may shift into an uptrend.
  • A breakdown below 2.18 could indicate a bearish continuation.
• Trader Psychology:
  • Indecision near 2.37 with doji candles suggests lack of strong conviction.
  • Fear near 2.18 support, but buyers stepping in.
  • Greed near 2.45 resistance, leading to selling pressure.

Conclusion:

• The stock is in a range-bound market with key support at 2.18 and resistance at 2.45.
• A breakout beyond these levels with volume could confirm a new trend direction.
• Traders should wait for strong breakout confirmation before entering a trade.

📉 Bearish bias if price breaks below 2.18.
📈 Bullish bias if price breaks and holds above 2.45.

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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