The price of Jardine C&C reached a low of $25.75 last week.
From a technical analysis point of view, we believe that the price has now reached its support level.
The first reason for this is that, according to the volume profile indicator, volume was at its lowest on the day of the low. This suggests that the selling volume has been exhausted and the price should recover from here.
A look at history shows that the price always reverses when it reaches its minimum volume profile point
History is likely to repeat itself this time too when the price reaches the minimum volume profile point again.
Fibonacci downward projection.
Next, if we do a Fibonacci projection from the top of the rectangle to the bottom of the rectangle during the sideways consolidation between November last year and January this year (as shown in the chart), the 100% mark to the downside was very close to the $25.80 low. This reinforces that the stock may have reached its price target at this level. Therefore, the recent breakout above $26.90 is a good opportunity to buy this stock now.
Fibonacci upwards projection.
It is a very clear head and shoulders chart formation if we look at the hourly chart of the stock.
If we do a Fibonacci upward projection from the bottom to the neckline of the head and shoulders pattern, we concluded that the price target is $28.
Fibonacci upwards projection.
The chart above shows that $28 was close to the support level at which the price collapsed in mid-January and which will become an important resistance point if the price rises again.
Point of control.
Another way to determine a good support or resistance point is to look at the POC (Point of Control) of the previous volume profile session. This is the point with the highest volume. This means that the price was most consolidated at this point.
This is point A, the red line, on the Jardine C&C chart. The next potential resistance in a price recovery is therefore between point B and point A. Point B was the price target, which, as already mentioned, results from the Fibonacci projection.
In this case, the price target is between $28 and $28.50. this means an upside potential of more than 4 % compared to the closing price on February 7
About Jardine C&C
Jardine Cycle & Carriage (“JC&C” or “the Group”) is the investment holding company of the Jardine Matheson Group in South East Asia.
The Group holds a 50.1% stake in Astra, a diversified group in Indonesia, which is also the largest independent automotive group in Southeast Asia.
JC&C’s direct automotive holdings in its portfolio include Cycle & Carriage in Singapore, Malaysia and Myanmar, as well as its 49.9% stake in Tunas Ridean in Indonesia.
JC&C is a leading Singapore-listed company, around 77% of which is owned by the Jardine Matheson Group. Together with the Group’s subsidiaries and associates, JC&C employs around 240,000 people across Southeast Asia.
To find out more about Minichart system, register for a free event here.