Affin Holding’s share price gapped above the short term
resistance line at the start of the month after rumours arose that the bank
could be an M&A target. Also confirming the ascending triangle pattern in
the process, the share price reached the measurement objective of RM3.38 within
the same day. With the trigger line
breached, this resistance level has turned support. The share price had since continued
its uptrend although the rise has also met equally persistent resistance.
Despite the formation of multiple shooting star patterns, these potential
bearish reversal patterns were quickly dispelled by the gains made in the
ensuing days. At present, the price action is starting to form yet another
ascending triangle. A decisive close above the RM3.38 corresponding resistance
level will signal further gains towards RM3.60/65.
On the weekly chart, the price action has broken the long
term downward trend, turning the resistance line to a share price support line.
With the run-up 3 weeks ago, the share price has also surpassed the recent high
of RM3.29 and looks to be consolidating before the next leg up. At present, the
MACD is supportive of the momentum while the 20-day SMA has also made a
successful golden crossover.
Source: Kenanga
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