Shares of JB Foods are set to head higher, according to the charts, Phillip Securities said on Tuesday.
“Price has been moving in a strong uptrend since November 2017 as the 20- and 60-day moving averages continue to act as a springboard for propelling price higher,” it said, noting that corrections have been halted by those lines.
Despite the 19 percent selloff in March from the S$0.66 high, “the long-term uptrend remains intact as price continues to hold on to the uptrend structure of Higher Highs (HH) and Higher Lows (HL),” the note said, adding that the 60-day moving average also halted a selloff on April 4.
“As a result, an increasing volume Bullish Outside Bar was formed on 9 April 2018 signals the resumption of the uptrend next. Furthermore, the Bullish Outside Bar also succeeded in breaking above the pullback line suggests the end of the correction/selloff,” Phillip Securities said.
It said it expected the price to head higher to retest the S$0.66 resistance area, followed by S$0.70.
It tipped at entry price at S$0.59, with a stop loss at S$0.49 and the take profit level at S$0.70.
The stock ended Tuesday up 7.69 percent at S$0.63.