Sheng Siong

Sheng Siong (OV8): BREAKOUT

Technical Observation:
The stock broke out this morning from its Accumulation zone which lasted 4 months since Dec 16. Selling Climax was seen in late 2016 with higher than normal volume. Also, Momentum (MACD) forming a bullish “Head and Shoulders” reversal Pattern, These observations provides adequate indications that the downtrend has likely to bottomed, coupled with the 4 months accumulation and breakout, we are likely to see the stock mark from current trading range.

Probable Trade Plan as follows.
Target Price   : S$1.10
Current Price : S$0.985
Stop Price      : S$0.945
R/R Ratio       : 2.88x

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