Correction in Catcha’s share price may have ended and the share price looks set to trade higher.
After a lackluster debut, the share price rallied in early August. The rally looked credible as it was on high volume. The share price has since corrected and may have found support at around RM0.70 level. The close on Tuesday was 62% of the early August rally, which is still considered a bullish retracement.
Confirmation of the return of buyers came yesterday when the share price closed above Tuesday’s high of RM0.785, breaking the sequence of lower highs of the past 5 days.
A position can be entered at the current level with a close below RM0.70 as stop, or a conservative stop at RM0.81, which was yesterday afternoon’s low.
A more conservative trader may choose to enter only on a close above RM0.90, the opening price of its debut and also the highest close to date, as a good uptrend should see it trading above its debut price. Should RM0.90 be violated, the share price may trade as far as RM1.10 based on its early August move, and thereafter RM1.25, extrapolating from the current trading range.
A close below RM0.70 should see the share price heading towards RM0.55.
After a lackluster debut, the share price rallied in early August. The rally looked credible as it was on high volume. The share price has since corrected and may have found support at around RM0.70 level. The close on Tuesday was 62% of the early August rally, which is still considered a bullish retracement.
Confirmation of the return of buyers came yesterday when the share price closed above Tuesday’s high of RM0.785, breaking the sequence of lower highs of the past 5 days.
A position can be entered at the current level with a close below RM0.70 as stop, or a conservative stop at RM0.81, which was yesterday afternoon’s low.
A more conservative trader may choose to enter only on a close above RM0.90, the opening price of its debut and also the highest close to date, as a good uptrend should see it trading above its debut price. Should RM0.90 be violated, the share price may trade as far as RM1.10 based on its early August move, and thereafter RM1.25, extrapolating from the current trading range.
A close below RM0.70 should see the share price heading towards RM0.55.
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