$YZJ Shipbldg SGD(BS6.SG)$YZJ Shipbldg SGD(BS6.SG), a prominent shipbuilder, has recently shown some encouraging price actions over the last few sessions.

After a significant decline from a high of about 4.16, the stock has staged a short term bullish reversal and is now at a critical resistance zone (shown in yellow in the chart) where it's strength will be tested.

Looking at the trend, the price has managed to float above the 20-day moving average (20MA), which shows early signs of flattening.However a longer term uptrend is still not apparent as the 60MA is still pointing down.

The yellow band is a key resistance zone as it encompasses a few key levels:

- 3.65 & 3.70 which are both key psychological levels,

- 3.67/3.75 which were the levels of a previous peak.

A more convincing bullish reversal requires prices to overcome this resistance zone with conviction (i.e. high volume), which the last 2 sessions lacked. The base case would be for the prices to consolidate at the current level, waiting for increased participation. The bear case would be a breakdown, leading to a potential testing of the previous low.

@Bridge Buzz SG