Singapore stock analysis. Bullish Flag Pattern.
Golden Agri Resources Ltd, listed in Singapore Stock Exchange, SGX, stock code, E5H is the world’s second-largest palm oil planter. The latest news said that output will increase as plantations are expanded in Indonesia and new trees mature. This is the fundamental.
From the chart and price action, the technical analysis is seeing a ‘big’ bullish flag. There were a few small bullish flags that formed the pole. There was sideways to consolidate for sometimes, that formed the flag like. Now the price is broken the resisted trendline. Can the momentum hold and truly break higher? Will see.
But, to complete the bullish flag pattern that the break up to be equal to the pole height or slightly shorter may take a few years. Base on the duration that completed the pole. Are you trader or investor? Can you hold for that long even if the break up is a very steep one? Manage your risk.
What is Bullish Flag Pattern? See the inserted picture on the E5H weekly chart for the pattern.
The rules are,
1) The requirement is steep rise in price formed a “Pole” followed by a consolidation that formed “Flag” or “Pennant”.
2) The psychology is “Flag” or “Pennant” shows a temporary disruption to underlying uptrend.
3) Additional consideration such as falling volume in a “Flag” or “Pennant”, and Price close above resistance with increase in volume.
Trade what you see and not what you think.
Singapore based Golden Agri, E5H Weekly Stock Chart
Golden Agri, E5H Weekly Chart
DSICLAIMER
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