Technical Analysis of Tai Sin Electric (500) - 1D Chart
1. Trend Analysis
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Overall Trend:
- The stock has been in a long-term range-bound movement, fluctuating between SGD 0.380 and SGD 0.415 for most of the period shown.
- Recent price action shows a breakout above SGD 0.415, reaching a high of SGD 0.430, but it has since pulled back to SGD 0.395.
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Recent Higher Highs / Lower Lows:
- A higher high at SGD 0.430 was established, followed by a lower high at SGD 0.415.
- The most recent higher low was at SGD 0.390, meaning the trend attempted to go bullish but is now retracing.
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Signs of Trend Weakening:
- Recent red bars with long upper wicks suggest selling pressure at higher levels.
- Failure to hold above SGD 0.415 indicates that buyers were unable to sustain momentum.
- Multiple small-bodied candles near resistance signal indecision.
2. Key Price Action Signals
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Strong Trend Bars:
- The breakout above SGD 0.415 to SGD 0.430 was accompanied by strong green bars.
- The most recent large red bar closing at SGD 0.395 suggests heavy selling pressure.
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Reversal Patterns:
- Bearish Reversal: The strong rejection at SGD 0.430 followed by a drop below SGD 0.415 suggests a potential trend reversal.
- Pin Bar at Resistance: There are long upper wicks near SGD 0.415, confirming rejection.
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Inside Bars & Dojis:
- Inside bars around SGD 0.400 suggest consolidation before the breakdown.
- Dojis and small candles around SGD 0.395 indicate market indecision.
3. Support & Resistance Levels
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Key Resistance Levels:
- SGD 0.430 – Strong rejection area.
- SGD 0.415 – Former resistance, now tested again.
- SGD 0.400 – Psychological resistance.
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Key Support Levels:
- SGD 0.395 – Current price level, acting as minor support.
- SGD 0.390 – Recent higher low.
- SGD 0.380 – Strong support from historical price action.
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Price Reactions at Levels:
- The recent pullback to SGD 0.395 suggests a test of support.
- If SGD 0.390 breaks, further downside to SGD 0.380 is likely.
4. Breakout & Pullback Analysis
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Breakout Strength:
- The breakout above SGD 0.415 was strong initially but failed to hold.
- The rejection at SGD 0.430 signals a potential false breakout.
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Pullback Assessment:
- The pullback to SGD 0.395 is a key test—if it holds, the uptrend could resume.
- If it fails to hold, sellers may push the price back to SGD 0.390 or lower.
5. Market Context & Trading Bias
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Current Market Phase:
- The stock is transitioning from a range-bound market to a possible uptrend, but the rejection at SGD 0.430 signals hesitation.
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Potential Trend Shift Clues:
- Failure to hold above SGD 0.415 suggests bulls are weakening.
- If buyers step in at SGD 0.395 - 0.390, the uptrend could continue.
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Trader Psychology:
- Fear is increasing as price fails to sustain the breakout.
- Indecision candles signal a wait-and-see approach from market participants.
6. Supply & Demand & Liquidity Analysis
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Supply/Demand Zones:
- Supply Zone: SGD 0.415 - 0.430
- Demand Zone: SGD 0.380 - 0.390
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Volume & Liquidity:
- Increased volume during the breakout suggests institutional buying.
- The recent red bars with volume indicate selling pressure.
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Trade Setups:
- Pullback Buy: If the price finds support at SGD 0.395 - 0.390, a buy opportunity exists targeting SGD 0.415 - 0.430.
- Breakout Play: A strong move above SGD 0.430 with volume would signal a continuation to SGD 0.450.
7. Risk Management Strategy
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Entry Points:
- Aggressive Buy: Near SGD 0.395, expecting support to hold.
- Conservative Buy: Near SGD 0.390, if a bullish signal appears.
- Breakout Buy: Above SGD 0.430 on strong momentum.
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Stop-Loss Placement:
- Below SGD 0.385 to protect against downside risk.
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Profit Targets:
- First Target: SGD 0.415
- Second Target: SGD 0.430
- Extended Target: SGD 0.450 (if breakout sustains)
Conclusion & Trading Bias
- The market is attempting to shift from a range to an uptrend, but selling pressure remains strong at higher levels.
- SGD 0.395 - 0.390 is a critical support zone—if it holds, a bullish continuation is possible.
- If SGD 0.390 breaks, the price may revisit SGD 0.380 before another attempt higher.
- Traders should watch price action near support levels before making entries.
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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