Above is the daily chart of Singamas Container Holdings (0716.HK). It primarily focuses on manufacturing containers and providing logistic services.
Recently the stock price has been surging greatly along the green up-trend line which is quite steep. This line provides support to the price.
On the other hand, the red solid line is the resistant stopping the price from going any higher.
Now we can see that the price has moved to the interception of the two lines, which means that it would have to break either side.
Support is at 3.30 and resistant is at 3.42. If it breaks out, then of course we can buy this stock. If it goes down instead, then we can short it.
Apart from the flag shape, the stock price was resisted at 3.50 twice. This might possibly be a bearish flag signaling bearish continuation. So going downside is more likely then rising this time.
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