Vicom - 20 Mar 2025

Technical Analysis of VICOM LTD (WJP.SGX) – 1D Chart

1. Trend Analysis

• Market Trend: The stock is in a ranging market (sideways movement) between SGD 1.27 and 1.46.
• Recent Highs/Lows:
  • Higher highs: 1.46 (January), 1.41 (April), 1.40 (August).
  • Lower highs: 1.36 (May), 1.35 (October), 1.34 (March).
  • Lower lows: 1.27 (August), 1.30 (September, February).
• Signs of Weakness:
  • Price has been fluctuating within a tight range (1.30 - 1.35) in recent months.
  • No strong breakout with momentum.
  • Small trend bars and overlapping candles suggest indecision.

2. Key Price Action Signals

• Strong Trend Bars: No significant bullish or bearish momentum bars.
• Reversal Patterns:
  • August 2024: Sharp drop to 1.27, then a strong bounce – potential reversal.
  • March 2025: Price approaching previous resistance (1.34-1.35), testing it.
• Inside & Doji Bars:
  • Several small candles around 1.30-1.34, showing market indecision.

3. Support & Resistance Levels

• Major Support:
  • 1.27 - 1.30: Strong historical support zone.
  • 1.32: Previous swing low from December.
• Major Resistance:
  • 1.34 - 1.35: Currently testing this zone.
  • 1.40 - 1.41: Previous swing highs, key breakout level.

4. Breakout & Pullback Analysis

• Breakouts:
  • No significant breakout yet. A break above 1.35-1.36 with strong volume could push price towards 1.40.
  • A breakdown below 1.30 may test 1.27 again.
• Pullbacks:
  • Short-term range pullbacks near 1.32 - 1.34.
  • Low volatility, making trends weak.

5. Market Context & Trading Bias

• Trending or Ranging?
  • Currently ranging between 1.30 - 1.35.
• Potential Trend Shift?
  • A breakout above 1.35 could indicate an uptrend towards 1.40.
  • A break below 1.30 could push price towards 1.27.
• Trader Psychology:
  • Indecision in the market (small candles, overlapping bars).
  • Investors waiting for a breakout or strong directional movement.

6. Supply, Demand & Liquidity Analysis

• Supply/Demand Zones:
  • Demand Zone: 1.27 - 1.30 (buyers step in).
  • Supply Zone: 1.35 - 1.40 (sellers active).
• Volume:
  • Relatively stable, with occasional spikes indicating liquidity injections.

7. Risk Management Strategy

• Long (Bullish) Plan:
  • Entry: Above 1.35 (confirmation of breakout).
  • Stop-Loss: Below 1.32.
  • Profit Target: 1.40 - 1.41.
• Short (Bearish) Plan:
  • Entry: Below 1.30.
  • Stop-Loss: Above 1.33.
  • Profit Target: 1.27.

Conclusion

• Current Status: VICOM LTD is in a sideways range (1.30 - 1.35).
• Key Levels: 1.27 (support), 1.35 (resistance), 1.40 (breakout target).
• Breakout Watch: Wait for price action confirmation above 1.35 for a bullish move or below 1.30 for a bearish move.

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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