Another Breakout
Attempt at 200-day MAV Line
Today we offer another trading strategy based on the 200-day
MAV line. The daily chart clearly shows that Olympia has experienced five
failed breakout attempts at this moving average line since June last year. Last
Friday, this stock tried yet again to
take out this formidable 200-day
MAV resistance line when the trading
volume was particularly high. Should Olympia eventually violate this line, we
think the subsequent upward momentum should be massive. Hence, we advise traders
to accumulate the shares should a breakout occur. We are eyeing the RM0.31 and
RM0.33 levels as the upside targets, while a cut loss may be initiated should
the share price retrace below the 200-day MAV line.
For many months, Olympia’s share price has been pressured by
200-day MAV line. From the above daily chart, we can see that every rebound
attempt the stock has made since June last year has been capped by this moving
average line. Finally, last Friday, the stock tried very hard to crack above
this line, as evident by its higher trading volume on that day.
Hence, a trading
opportunity presented itself at
the 200-day MAV line. As the 200-day MAV line has been
capping the stock’s upside for so
many months, an eventual breakout from this line is expected to give rise to
impressive gains. Hence, we advise traders to accumulate Olympia shares should
it violate the moving average line. We are eyeing the RM0.31 and RM0.33 levels
- both of which represent the major highs created last year - as the upside target. Traders may want to
cut loss should the stock close back below this 200-day MAV line.
The 200-day MAV line, which now lies at the RM0.27 level, is
now the immediate crucial resistance, while next resistance is seen at RM0.285,
followed by the RM0.31 and RM0.33 levels. Immediate strong support lies at the
RM0.24 level, followed by the RM0.22 level.
Source: OSK188
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