Hotung Inv - 02 May 2025

Hotung Investment Holdings Ltd (SGX: BLS) on the daily timeframe (1D) 

📉 1. Trend Analysis

• Primary Trend (2024–Early 2025): Downtrend

  • Lower highs: 1.65 → 1.49 → 1.47 → 1.39 → 1.32

  • Lower lows: 1.49 → 1.43 → 1.30 → 1.28 → 1.26

• Recent Shift (March–May 2025): Transitional to Mild Uptrend

  • Price broke above previous lower high at 1.32 and retested 1.43 twice.

  • Higher lows forming: 1.26 → 1.30 → 1.35 (recent bar)

  • Price now testing upper range at 1.41 (May 2 close).

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📌 2. Key Price Action Signals

• Volume Spikes:

  • Early Dec 2023: Sharp drop with high volume, potential distribution.

  • Early Mar 2025: Bullish volume surge; large green candle breaks above prior 1.32 resistance.

  • May 2, 2025: Moderate green bar with +2.17% gain and higher volume than previous day, testing recent highs.

• Reversal Patterns:

  • Feb 2025: Pin bar near 1.26 with long lower wick and recovery — strong demand zone.

  • Mid-Mar 2025: Engulfing bullish candle breaks past tight consolidation.

• Inside Bars & Dojis:

  • Feb–Mar 2025: Multiple small-bodied bars and inside bars around 1.26–1.32 suggest accumulation/consolidation.

  • Breakout followed with momentum suggests smart money entry.

• Gaps:

  • No clear visible gap ups/downs — consistent volume and price behavior suggest stable liquidity.

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🔁 3. Support & Resistance Levels

• Support Zones:

  • 1.26 – Multi-bar bottom, February 2025 (major support).

  • 1.30–1.32 – Near-term support; prior resistance turned support.

• Resistance Zones:

  • 1.43 – Tested twice in March and April 2025; significant overhead supply.

  • 1.49–1.51 – Previous minor highs from 2024.

  • 1.58 and 1.65 – Long-term resistance levels.

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📊 4. Breakout & Pullback Analysis

• March 2025 Breakout: Strong bullish candle (with volume) over 1.32.

  • Pullback to 1.30 held — sign of strength.

• April 2025: Minor double test of 1.43 failed — supply zone respected.

• Recent Bars: Attempting another breakout; May 2 bar closed strong at 1.41 with slight volume increase.

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🧭 5. Market Context & Trading Bias

• 2024: Clear downtrend with lower highs/lows, weak demand zones.

• 2025: Shift in momentum; consolidation at base (1.26), signs of institutional accumulation.

• Bias: Neutral to bullish short-term, conditional on break above 1.43.

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📦 6. Supply, Demand & Liquidity Analysis

• Demand Zones:

  • 1.26–1.30: Strong buying interest confirmed by wicks and volume.

• Supply Zones:

  • 1.43–1.49: Clear historical selling pressure.

• Liquidity Clues:

  • Volume spikes align with directional bars.

  • No trap candles or fakeouts spotted recently.

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⚖️ 7. Risk Management Strategy (Hypothetical Example)

Note: This is not financial advice, just a structural example.

• Entry Idea: If price breaks and closes above 1.43 with volume.

• Stop-loss: Below recent swing low at 1.30.

• Target 1: Prior high at 1.49, Target 2: 1.58 (if momentum sustains).

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📅 Final Summary – May 2, 2025

• Current Close: 1.41 SGD (+2.17%)

• Trend: Recovering from downtrend, now consolidating under resistance.

• Volume: Increasing slightly; watching for breakout signs.

• Key Zone: 1.43 (critical resistance); 1.30–1.32 (strong 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:  7.52%