CapitaComm

Commentary:

Today, price action broke out from its 3-months resistance trendline since 8 Sep with healthy vol. A bullish divergence of vol since Sept was also identified and the break up in price action today confirm that price action could be poised for more upside potential.

Strategy:

Traders can consider to enter Long position once $1.02 (which is the high of today and also the MA20 resistance line) is penetrated with strong buying interest. Price are likely to face some resistance at $1.08 (smaller prior peak) but a more likely short-term price target should be in the region of $1.18-$1.20 (fibonacci resistance, more significant prior peak). A tight stop-lost plan should nevertheless be in place.