N2N Connect’s (N2N) share price has been trading sideways as
far back as February. In line with the
declining trading volume, the Bollinger Bands has continued to narrow before
leading up to a bullish volatility breakout observed on Thursday. Supported by
a spike in activity, the Bollinger Bands has begun to expand while the
previously non-trending indicators (MACD, RSI and Stochastics) have also turned
bullish as well. Furthermore, the share price has since extended its rally,
surpassing the previous high at RM0.535, which suggests further gains to come.
On the weekly chart, the price action has confirmed a
bullish Pennant chart formation with increased volume. The 20, 50 and 100-day
SMAs have remained firmly positive and supporting the uptrend continuation.
With a definitive close above the resistance line last week, we reckon N2N's
share price is likely to continue its upward momentum towards our measurement
objective of RM0.70. The former downward-sloping resistance line has now turned
support at RM 0.45/44 and is the likely to become a stop-loss level.
Source: Kenanga
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