Straits Trading - 28 Feb 2025

Technical Analysis of Straits Trading (S20.SGX) - Daily Timeframe

1. Trend Analysis:

• Overall Trend: Clear downtrend from early 2023 to mid-2024. The price has been forming consistent lower highs (LH) and lower lows (LL).
• Recent Trend Shift: Since mid-2024, the price is attempting to stabilize around 1.40 - 1.50 SGD, showing signs of accumulation.
• Signs of Weakness:
  • The downward momentum has slowed with smaller red bars and overlapping candles.
  • Lack of aggressive selling suggests possible base formation.
• Higher Lows? Price is struggling to break above 1.50 - 1.55 SGD, a key resistance.

2. Key Price Action Signals:

• Strong Trend Bars: The major downtrend had strong red bars (wide range and strong closes).
• Reversal Signals:
  • May 2024: Sharp drop to 1.35 SGD, followed by a bounce, indicating buyer interest at this level.
  • Dec 2024 – Feb 2025: Small-bodied candles and higher lows suggest early trend reversal attempts.
• Inside Bars & Doji Candles:
  • Multiple small-bodied bars (indecision) around 1.42 - 1.45 SGD, indicating consolidation.
  • Doji bars near resistance zones suggest hesitation in bullish momentum.

3. Support & Resistance Levels:

• Key Support: 1.35 SGD (May 2024 low).
• Immediate Resistance: 1.50 - 1.55 SGD (multiple rejections).
• Major Resistance: 1.75 - 2.00 SGD, where the downtrend accelerated.

4. Breakout & Pullback Analysis:

• Breakout Attempts:
  • Recent 1.45 SGD breakout lacks strong follow-through, meaning bulls need more momentum.
• Pullback Behavior:
  • Pullbacks to 1.40 - 1.42 SGD are attracting buyers.
  • A higher low above 1.42 SGD could confirm a trend reversal.

5. Market Context & Trading Bias:

• Current Market Condition: Transitioning from a downtrend to sideways/range-bound movement.
• Potential Trend Change? Buyers are trying to build a base, but need to break 1.50 - 1.55 SGD for confirmation.
• Trader Sentiment:
  • Fear is reducing (less aggressive selling).
  • Cautious buying suggests accumulation by smart money.

Final Thoughts:

• Bullish Case: A break and close above 1.55 SGD could signal a potential uptrend.
• Bearish Case: Failure to hold 1.40 SGD may lead to a retest of 1.35 SGD or lower.
• Neutral Stance: Market needs confirmation of a trend shift.

Next Steps:

• Watch for a strong close above 1.50 - 1.55 SGD for bullish confirmation.
• A break below 1.40 SGD could lead to further weakness.

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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