Stock Analysis for YZJ Shipbuilding (BS6) - 1D Chart (SGX)
1. Trend Analysis
- Current Trend: The stock was in an uptrend for most of 2024, making higher highs (HH) and higher lows (HL). However, a strong downward move has begun in 2025.
- Most Recent Highs/Lows:
- Higher highs: $2.76 → $3.14 → $3.32
- Higher lows: $2.36 → $2.85
- Most recent lower low: $2.41
- Trend Weakness Signs:
- The stock made an aggressive drop from $3.32 to $2.41, indicating heavy selling pressure.
- Large bearish bars with high volume suggest panic selling.
- If $2.41 does not hold, further downside could be seen.
2. Key Price Action Signals
- Strong Trend Bars:
- The sharp drop from $3.32 was accompanied by large red candles, suggesting strong bearish momentum.
- Recent green bar (March 5) shows a slight attempt at reversal, but weak compared to the selling pressure.
- Reversal Patterns:
- No clear bullish reversal yet. A strong rejection wick or bullish engulfing candle would be needed.
- Possible support zone at $2.36 - $2.41.
- Inside Bars & Dojis:
- No clear inside bars yet, but if one forms, it may indicate a consolidation before the next breakout or breakdown.
3. Support & Resistance Levels
- Major Resistance:
- $2.76 (recent high before breakdown)
- $3.14 - $3.32 (strong selling zone)
- Major Support:
- $2.41 (current price) → If this breaks, $2.36 - $2.30 becomes next support.
- Below $2.30, support at $2.24 - $2.10.
- Price Reactions:
- Price is testing previous swing low ($2.41 - $2.36). A bounce or breakdown here will determine the next move.
4. Breakout & Pullback Analysis
- Breakout Strength:
- The break below $2.85 and $2.76 was strong with volume, confirming a trend shift to the downside.
- If price rebounds, watch for a weak pullback to $2.60 - $2.70 as a possible shorting opportunity.
- Pullback Formation:
- If the stock stabilizes around $2.41, it might form a bearish flag (indicating more downside).
- A strong bounce from $2.41 with volume might signal a reversal attempt.
5. Market Context & Trading Bias
- Current Market Phase: Transitioning from uptrend to potential downtrend.
- Price Action Clues for Trend Shift:
- Sharp breakdown from highs with volume suggests potential trend change.
- A strong bounce and reclaim of $2.60+ could negate the bearish move.
- Trader Psychology:
- Fear & panic selling evident in large red bars.
- Buyers may attempt to defend at $2.36 - $2.41, but if they fail, next support is $2.30 - $2.24.
6. Supply, Demand & Liquidity Analysis
- Supply Zones:
- $2.76 - $3.14 was a key supply zone where sellers took control.
- Heavy selling near $3.32, showing that bulls failed to sustain the uptrend.
- Demand Zones:
- $2.36 - $2.41 is a key level to watch for demand.
- If buyers step in here, a relief bounce to $2.60 - $2.70 could occur.
- Liquidity Traps:
- Potential bull trap at $3.32.
- If price rebounds and struggles at $2.60, it may form a bear flag.
7. Risk Management Strategy
Trade Setup 1: Short on Weak Pullback
- Entry: $2.60 - $2.70 (if price struggles)
- Stop-loss: Above $2.75
- Target 1: $2.41
- Target 2: $2.30 - $2.24
Trade Setup 2: Long on Support Bounce
- Entry: $2.36 - $2.41 (if buyers defend)
- Stop-loss: Below $2.30
- Target 1: $2.60
- Target 2: $2.75
Conclusion
- Bearish bias in the short term after a strong breakdown from $3.32.
- $2.41 support level is critical—a breakdown could lead to $2.36 - $2.30.
- If bulls reclaim $2.60 - $2.70, a relief rally is possible.
- Best strategy: Wait for confirmation at key levels before entering trades.
📉 Short bias until reversal signals appear. 📈 Potential long if strong bounce forms at support.
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.
Dividend: 2.69%
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