The stock has formed 3 consecutive white candles over the last 3 days, breaking out of the neckline of its double bottom pattern. This breakout has sent prices up to a new 52-week high, accompanied by rising volume. With prices trading above all the rising EMAs, further upside may follow in the coming days.
Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) have hooked up again, indicating that buying momentum is rising again.
We think that aggressive traders may want to go long here or on weakness with a stop-loss set at RM0.415 (marginally below the 20-day EMA). On the upside, prices may push on to test the 1.5year high of RM0.505 and the next Fibonacci target at RM0.525 (2.0x) next.
Source: CGS-CIMB Research - 22 Jul 2024
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Created by sectoranalyst | Sep 27, 2024