Sunway is taking a breather after the recent sharp sell-off
of its shares, following the violation of the 50-day MAV line that supported
its uptrend for about 6 months. The stock is now consolidating between RM2.27
level and RM2.46 level. A violation of either one of these two levels would
determine its next prime move. Having said
that, as the stock has recently violated the key 50-day MAV line, there
is a possibility that it will retrace further after this consolidation phase.
In early April, Sunway experienced a major breakdown after it violated the 50-day MAV line
which has supported the previous 6-month uptrend.
Following the violation of this line, its share price also declined rapidly.
Meanwhile, the stock is now consolidating the recent sharp
sell-off by moving sideways within the RM2.27-RM2.46 area. A breakout or
breakdown from these levels would determine Sunway’s next prime move. As the
stock has just violated the important 50-day MAV line, the odds are in favour
of a further retracement. In other words, the risk that the RM2.27 level will
be violated is greater than the chance of breaking the RM2.46 resistance level.
The first downside target is pegged at the RM2.17 level, followed by the RM1.97
level.
Having said that, should a breakout from the RM2.46 level
occur, the stock is expected to experience a short-term rebound that may see
the stock retesting the 50-day MAV line which is now situated at the RM2.56
level.
Source: OSK188
No comments:
Post a Comment