$Sigma Healthcare Ltd (SIG.AU)$ shares rose 23.39% on Thursday, with trading volume expanding to A$95.71 million. The stock price has reached a new record high. Sigma has risen 24.68% over the past week, with a cumulative gain of 139.57% year-to-date.

Sigma's technical analysis chart:

Technical Analysis:

• Support: A$1.52

• Resistance: A$2.52

• Price range A$1.52 to A$2.52: The trading range indicates a heavy concentration of buy orders, with the stock price on an upward trend. The stock repeatedly touched the level near A$1.52, where it found significant support and broke upward. There is a strong presence of buy orders around A$1.52, suggesting a robust foundation for the price. There is considerable upward pressure near the resistance level of A$2.52, with a lot of profit-taking positions, which suggests strong selling pressure. Going forward, it will be crucial to monitor whether the stock can effectively break through the resistance level at A$2.52.

Market News :

The ACCC decided not to oppose the merger of Sigma Healthcare Limited and CW Group Holdings Limited, following Sigma's acceptance of a court-enforceable undertaking. On December 11, 2023, the two companies entered into an agreement for Sigma to acquire all Chemist Warehouse shares in a deal valued at A$700 million, comprising Sigma shares and cash. Upon completion, Chemist Warehouse shareholders will own 85.75% of the combined ASX-listed entity, with Sigma shareholders holding the remaining 14.25%. This transaction effectively represents a reverse acquisition of Sigma by Chemist Warehouse.

Overall Analysis:

Fundamentally, focus on the company's performance and operational status. Technically, it is necessary to monitor whether the support at the support level remains valid, and whether the resistance level can be effectively broken through.

In this scenario, investors should adopt a cautious strategy, setting stop-loss points to manage risk and maintaining ongoing vigilance regarding company developments and market conditions.