
However, the stock is going through selling pressure in the very short term. Weakness is seen from the “Long Black” candle of last Wednesday, where the price gapped up only to close the gap at the end of the day, which is yet to be neutralised. This occurred right at the 200-day MAV line, which currently lies at RM4.88. The weakness is still unconfirmed, and requires a close below RM4.80, i.e. below the close of last Wednesday.
Selling from the current level is not necessarily harmful to the long-term uptrend. This is as long as the selling does not break below the support area at RM4.40-RM4.50, which is also a 38% retracement of June 2010-Aug 2011 rally. This should keep the uptrend intact and the share price may test RM5.80 if it breaks the RM5.15 resistance level. However, dropping below RM4.40 may see the current price trend turn weak, with support seen at the psychological RM4.00, near the high of March 2010.
(Chart posted with courtesy of ChartNexus)
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