Hunting a Penny - Fitters

Fitters broke away from its sideway channel and formed a bullish engulfing candle after today’s trade. D Line of MACD surged higher in the positive zone. Indicators of Stochastic showed overbought status but can be more overbought for a bullish stock. My favorite indicator, W%R, cut its average again from underneath.

The same indication also found in its 60-min chart for today’s trade.

All these scenario warrant a higher movement is possible tomorrow. However, due to the weaker FBMKLCI, forward movement might be curbed in earlier instance though its overhead resistance is charted at 1.02. Stop loss should be applied if price fell below 0.90.

Fitters closed at 0.95 today.

Analyzed and Written by Smartbiz (Chart extracted from ChartNexus. Click to view)