XiDeLang is going through a consolidation; expect it to trend on the direction of breakout.
The stock has been on a downtrend since its debut in 2009. The rally in 2010 failed to see the share price closing above the opening week low and the stock trended lower from then on. The share has been making a series of lower highs and is now trading below 2010 bottom. However, the stock has been consolidating sideways between RM0.29 and RM0.31 since mid- Aug. There is a hint of upward bias to the consolidation as the broad market sold off during the period. However, it has to be confirmed by a close above RM0.31. The stock can be purchased on the breakout with first target being RM0.36, the 50% retracement level of Jul-Aug downmove, which is also the May low, and thereafter, RM0.38. A close above RM0.40 could be bullish in the longer term as most of selling at that level was amid a spike in volume in early July. But a close below RM0.29 should see the continuation of the downtrend. No clear supports can be identified at the new low but supports can be expected at RM0.25 and RM0.20.
The stock has been on a downtrend since its debut in 2009. The rally in 2010 failed to see the share price closing above the opening week low and the stock trended lower from then on. The share has been making a series of lower highs and is now trading below 2010 bottom. However, the stock has been consolidating sideways between RM0.29 and RM0.31 since mid- Aug. There is a hint of upward bias to the consolidation as the broad market sold off during the period. However, it has to be confirmed by a close above RM0.31. The stock can be purchased on the breakout with first target being RM0.36, the 50% retracement level of Jul-Aug downmove, which is also the May low, and thereafter, RM0.38. A close above RM0.40 could be bullish in the longer term as most of selling at that level was amid a spike in volume in early July. But a close below RM0.29 should see the continuation of the downtrend. No clear supports can be identified at the new low but supports can be expected at RM0.25 and RM0.20.
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