I think right now it is still too early to actually make a call whether it’s going to break below or it’s going to rebound from here, all right? So, my suggestion is firstly, because of this current uptrend we only want to focus on the long trading setup. We don’t want to focus on the short trading setup yet, unless if it breaks this green line, okay?

Before it breaks this green uptrend line, there is nothing to be bearish about this particular stock, all right, which means that at this very current point in time, we want to look at potential long or buy trading setups. So, the correction back to here at $24.70 region, all right, is immediate, quite important immediate support.

So if over the next one session, two sessions or three sessions, if we start to see some kind of bearish reversal candlestick forming around here, it could be a harami, it could be an engulfing candlestick, or if you could even see a pin bar or hammer where it opens somewhere around this support level and went all the way below the green line, and if it starts to come back rally all the way back and close where the support is, that is going to suggest that the market is very supportive of this particular stock at current support level, alright?

So when you see a pin bar or when you see a bullish engulfing, a bullish harami, that kind of candlestick reversal pattern, you could potentially start planning for your trading setup already, because once you have the confirmation, you can actually straight away enter the trade, and to start to adopt a long position from here.

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Philip Teo

Founder & CEO at Traderwave Pte Ltd
Philip Teo is an entrepreneur, speaker and trading coach who specialises in the field of Technical Analysis of the financial markets. He is currently the Founder and CEO of Traderwave Pte Ltd, a financial technology company that offers a web charting application to global traders. He has conducted many trading seminars and appeared on national television before. He is also currently an official speaker and trainer with SGX Academy. Learn more about him at his Google+ Profile, LinkedIn Profile and Facebook Profile

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