Lian Beng

Evening all,

I have some words on Lian Beng, L03.SI, for today.

For about 2 years, Lian Beng consolidated inside the range of 24 cents to 32 cents. Midway through last year, Lian Beng surged up through the range to make new post-crash highs. The 200-day MA picked up the pace, and Lian Beng continued riding on the uptrend to where it is now. What happened after the breakout from the long-term consolidation looked like a diamond formation. Take a look at the trendlines I drew below. I am not too well-versed in diamond patterns since they do not occur often in our market. But there have been a few. From what I see in http://thepatternsite.com/diamondt.html , this is not a very reliable pattern to trade on. But, I will keep Lian Beng on my watchlist for observation purposes. The diamond in Lian Beng came with an upward breakout. So naturally, I will look for more upside in Lian Beng. Apart from the diamond, I am seeing a much more reliable pattern – the bull flag. Look at the chart below again, in green trendlines, I drew a potential bull flag. To deem it a confirmed flag, I want to see a clear breakout first.

So, with these two patterns to watch out for, and a slow, steady long-term uptrend, let us see what Lian Beng does in the weeks ahead.

Image

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

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