Raffles MG – Historical high despite market condition

Trend: Uptrend, 20ma up, MacD above 0

Support: 1.74, 1.69 (20 & 50ma), 1.60 (100ma close)

Resistance: 1.85

Observations:
Candlestick – Small white candle.
Histogram –4G1R, No bearish divergence.
RSI – Overbought. No bearish divergence.
Stochastic – Flatten at overbought.
Bollinger Band – Just came out of upper band.

Conclusion:
Raffles MG’s movement got me shocked as it had hit historical high despite current market condition. It is really a rare sight when market is so pessimistic. There must be some good news with regards to this counter to support its rally. Hence, there could be good opportunities in the long side for this counter.
Raffles MG’s trend remains uptrend as it starts to trade above all the moving averages. There is still no tell-tale sign that the uptrend is changing. But in short term wise, there could be a possible retracement as the indicators are signalling overbought and bearish signals. Hence, there could be a possibility that 1.85 could be formed as a resistance.
The downside target for the retracement could reach 1.74 level as support. But a more convincing support level would be 1.69 level as it confluence with both 20 & 50ma. If it got supported after the retracement, a higher low could be formed which could be a good opportunity for the long side.

What to watch out for this week:
1) Retracement to 1.74 or 1.69 level.
2) Breaking of resistance of 1.85 level.

Trading strategy to adapt right now:
- Counter trend trading could be adapted right now but have to target 1.74 as support. Risk & reward looks fine.
- Wait for retracement to support level and watch out for bullish signal to go long.

*Disclaimer applies