Hong Leong Asia - 21 Apr 2025

Hong Leong Asia (SGX: H22) on the Daily timeframe

🔍 1. Trend Analysis

• Primary Trend: Uptrend.

• Higher Lows Observed:

  • $0.61 → $0.67 → $0.79 → $0.90

• Higher Highs Observed:

  • $0.75 → $0.88 → $0.91 → $1.00 → $1.11 → $1.28

• Current Phase: Pullback/Consolidation after recent high of $1.28.

• Recent Weakness Signs:

  • Sharp drop from $1.28 to ~$0.93

  • Bounce back to $1.09 but still under $1.28 resistance

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⚡ 2. Key Price Action Signals

• Strong Bull Bars:

  • Feb to Mar 2025: Several strong bullish bars breaking prior resistance levels (e.g., $1.00 and $1.11).

• Reversal Candles:

  • Pin Bar + Volume Spike: After $1.28 top, there’s a long wick candle with high volume — classic bearish rejection.

• Gap Down:

  • After $1.28 high, a gap down occurred on large red candle indicating strong selling pressure.

• Volume Spikes:

  • Early March & Mid-April show strong green volume bars, confirming demand during dips.

• Inside Bars:

  • Found post-pullback at ~$1.00 — signs of accumulation or indecision.

• Doji Bars:

  • Seen near ~$0.95, indicating short-term exhaustion before price resumed uptrend.

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🔁 3. Support & Resistance Levels

• Key Resistance:

  • $1.28 – Recent peak.

  • $1.11 – Former high and recent rejection zone.

• Key Support:

  • $1.00 – Psychological and breakout re-test zone.

  • $0.90 – Former consolidation floor and breakout level.

  • $0.79 – Major higher low base before the breakout rally.

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🚀 4. Breakout & Pullback Analysis

• Breakout Strength:

  • From $1.00 to $1.28 – Massive bull bar with volume confirms strength.

• Pullback Analysis:

  • Price pulled back to around $0.93, respected $1.00 zone — possible bull flag formation.

  • Strong recovery candles suggest buyers re-entered around $1.00.

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📊 5. Market Context & Trader Psychology

• Current Context: Transitioning from strong uptrend to consolidation.

• Psychological Cues:

  • Greed: Seen in euphoric buying to $1.28.

  • Fear: Sharp rejection and profit-taking drop post-peak.

  • Indecision: Doji + small bars near $1.00 now — watching for confirmation.

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📈 6. Supply, Demand & Liquidity Zones

• Demand Zones:

  • $0.90–$1.00 – Large buyers stepped in here multiple times.

• Supply Zone:

  • $1.11–$1.28 – Strong selling pressure seen.

• Liquidity Trap Potential:

  • If price fails to reclaim $1.11, it may fake out and trap breakout traders.

Potential Trade Setups:

• 🔹 Pullback Buy: If price dips near $1.00 with a bullish pin bar + volume confirmation.

• 🔹 Breakout Play: On clean close above $1.11 with volume expansion.

• 🔹 Reversal Trade: Short below $1.00 if breakdown occurs with strong bear bar + volume.

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🛡 7. Risk Management Strategy

• Entry Zones:

  • Long: Near $1.00 support (with bullish confirmation).

  • Breakout Buy: Above $1.11.

• Stop-Loss:

  • Below $0.97 or below recent swing low ~$0.93 for aggressive setups.

• Take-Profit Zones:

  • TP1: $1.11

  • TP2: $1.28 (last high)

  • TP3: $1.35+ if breakout sustains

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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