Genting HK – Continuation of uptrend

Trend: Uptrend, 20ma up, MacD above 0

Support: 0.285 (20ma), 0.265

Resistance: 0.315 (Historical high)

Observations
Candlestick – Black Hammer.
Histogram – Many Rs. Bearish Divergence.
RSI – Around 60%. Bearish Divergence.
Stochastic – No Bullish Crossover yet.
Bollinger Band – At mid band. Starting to squeeze.

Conclusion:
Genting HK has been on the rise and had tested it historical high of 0.315 level. It failed to breach the historical high and started to retrace recently. Will Genting HK be breaking its historical high soon?
Genting HK’s chart is currently in an uptrend condition. It had formed a higher high recently and could be retracing for a higher low recently. The first possible higher low level could be at support level of 0.285 which confluences with 20ma. The next possible higher low could be formed at 0.265 support level. Based on the candlestick, it had formed a black candle yesterday which might confirm the support of 0.285 level. But the indicators have yet to show any bullish signals. One thing that we should take note is that the indicators are showing bearish divergence signal. Hence fore, there might be a chance that the trend might be changing.
If Genting HK manages to confirm the bullish candle, there might be a possibility that the uptrend would continue and 0.315 might be tested. If 0.315 is breached, Genting HK will head towards historical high and might not find any strong resistance level anymore. Bearish divergence might have failed if that happens.
On the other hand, if the bearish divergence is in play, the resistance level of 0.315 might hold and the trend might be threaten to change to either sideway or downtrend. In order for the trend to turn into downtrend, it must first break the 2 support level of 0.285 and 0.265 level.
In conclusion, Genting HK could be an opportunity for the long side as long as there is confirmation for the bullish candle. But one must be aware that there is existence of bearish divergence and risk management is to be tightened.
What to watch out for this week:
1) Confirmation of the black candle at 0.285 support
2) Breaking of 0.315 resistance

Trading strategy to adapt right now:
- Long when there is confirmation of the bullish candle but position size has to be cautious.

*Disclaimer applies