Arthur Wang Technical Analysis: Global Testing

Wednesday, May 28, 2025

Global Testing - 28 May 25

Global Testing Corporation (SGX:AYN) on the daily (1D) timeframe, with data as of Wednesday, 28 May 2025.

🔍 1. Trend Analysis

🟢 Long-Term Trend (Past Year):

Initial Uptrend from March 2024 to June 2024, forming higher highs and higher lows. Price rose from ~0.60 SGD to peak at 1.08 SGD in early July 2024.
Mid-Term Downtrend/Correction from July to October 2024: Clear lower highs (1.08 → 1.00 → 0.90).
Range-Bound period from Nov 2024 to Feb 2025, between 0.93 and 1.00 SGD.
Recent Short-Term Uptrend: March 2025 to April 2025 – breakout from consolidation zone, rallying to a new swing high of 1.15 SGD.
Current Bias: Neutral to Bearish — failed to sustain above 1.15; has now retraced sharply back to 1.06 with increasing volatility and wider bars.

🔁 2. Key Price Action Signals

🔸 Bars of Interest:

🔹 March 2025:

March 7–18: Series of strong bullish bars on increasing volume — breakout from multi-month range. Closed above 1.00 SGD, confirming buyer interest.
March 19–22: Continuation rally; volume stays high, but bars begin showing upper wicks, signaling early profit-taking.

🔹 April 2025:

April 3–10: Parabolic move to 1.15 SGD. Large bullish bars with long bodies and some volume spikes.
April 11–17: Several reversal signals including:
- Shooting Star on April 11.
- Followed by a bearish engulfing bar on April 15 near swing high.
- Volume increased on red days → early warning of exhaustion.

🔹 May 2025 (Recent Data):

May 20: Large red bar with a gap down, closing at 1.04 on high volume — confirmed breakdown from short-term support.
May 23–24: Price tested the breakdown zone (~1.08), but failed to close above → bearish rejection.
May 28: Sharp red bar (-4.5%) with volume spike; closed near the low of day at 1.06 → signals strong selling pressure.

📊 3. Support & Resistance Levels

🔻 Support Zones:

0.90–0.93 SGD: Major support from Oct & Feb lows.
1.00 SGD: Psychological round number; former resistance turned support.
1.04 SGD: Short-term support — just broken.

🔺 Resistance Zones:

1.08 SGD: Prior top from July 2024, now acting as overhead resistance.
1.15 SGD: New swing high; heavy selling came after touching this level.

📈 4. Breakout & Pullback Analysis

Breakout (March) above 1.00 was clean, supported by volume confirmation.
Pullback in April–May initially shallow but deepened sharply after April 15.
The May 20 gap down and follow-through selling suggest breakdown of structure.
Failed retest of 1.08 in late May supports a bearish pullback failure pattern.

🧠 5. Market Context & Trader Psychology

Transitioning Market: From uptrend (March-April) → now showing bearish reversal signs.
Greed-driven rally in March–early April; evident from parabolic move.
Current action shows fear and indecision, as price reacts sharply to resistance zones, with heavier red volume bars and failed bounces.

🧃 6. Supply, Demand & Liquidity Zones

Demand Thinning below 1.00; large-bodied red bars showing sellers dominating below that key level.
Liquidity Trap at 1.08 – traders who entered late in rally are now trapped, adding selling pressure.
Strong supply zone at 1.08–1.15, confirmed by reversal on large volume.

📌 7. Risk Management Strategy

📉 Short Bias Setup – Breakdown Play

Entry: Below 1.06 (confirmed breakdown bar).
Stop-loss: Above 1.10 (near recent rejection zone).
Take-profit levels:
- TP1: 1.00 (psych level & prior S/R).
- TP2: 0.93 (range support).
- TP3: 0.90 (previous swing low).

📈 Alternative Bull Reclaim Setup – Reversal Trade

Entry: Above 1.10 (bullish engulfing + volume).
Stop-loss: Below 1.04.
TP1: 1.15 (recent high), TP2: 1.20 (potential extension).

📰 8. Company News (Past 3 Months)

🔎 [Latest News Found Online for Global Testing Corporation Ltd. (SGX:AYN)]:

✅ 1. “Global Testing Reports FY2024 Results – Revenue Flat, Margins Decline”

Date: April 2, 2025
Summary: The company reported flat revenue YoY but noted margin pressure due to increased operating costs and slowing demand in semiconductor testing services. Profit declined ~12%.
Sentiment: Mildly negative – likely triggered post-earnings sell-off.

✅ 2. “Global Testing Appoints New CFO Amid Expansion in Taiwan”

Date: March 18, 2025
Summary: Announced a new CFO and hinted at a planned capital investment in a new test facility in Taiwan.
Sentiment: Neutral to Positive – contributed to the rally earlier in March.

✅ 3. “Analyst Downgrade by DBS – Valuation Concerns Post Rally”

Date: May 23, 2025
Summary: DBS downgraded the stock from "Buy" to "Hold" citing valuation stretch and technical overbought conditions.
Sentiment: Negative – likely led to sharp reversal around May 20–24.

📋 Summary & Final Technical Outlook

Timeframe	Trend Bias	Key Levels	Notes
Short-Term (1–2 weeks)	Bearish	Support: 1.00 / 0.93 — Resistance: 1.08	Breakdown below 1.04 confirmed. Heavy sell bar May 28.
Medium-Term (1–2 months)	Neutral to Bearish	Range between 0.90–1.08	Trend has lost momentum. Needs reclaim >1.10 for bullish reset.
Long-Term (3–6 months)	Neutral	Range: 0.90–1.15	Awaiting earnings-driven or sector catalyst to resume trend.

✅ Actionable Insight

Short-term traders should look for continuation shorts below 1.04/1.00 targeting 0.93/0.90.
Swing traders should monitor for reclaim of 1.10–1.15 with bullish price action before considering long positions.
Volume behavior confirms breakdown legitimacy – follow-through likely unless bullish reversal signals emerge.

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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Arthur Wang Technical Analysis