After
trading sideways for the most part of July and August, Notion VTEC's (NOTION)
share price broke down below the trading range to retest the
RM1.10 low made
in June. The
MACD is firmly
below the zero line, while the
histogram is seen expanding downwards to indicate an increase in downward
momentum. The 14-day stochastics oscillator has also declined notably to
reflect the recent sell-off. Notion's share price is now dancing with the
critical support level at RM1.10, where a move in either direction will not be
subtle. On the other hand, should a rebound occur from this level, the upside
target may be set at RM1.25 while a breakdown below the support could mark the beginning
of a downtrend.
On a weekly
basis, NOTION appears to be forming a potential bearish "Double Top"
pattern where the share price is hovering around the trigger line of RM1.10.
Coincidentally, the 50- and 100-day SMAs are both hovering closely to the
trigger line. Should a downside violation occur, the move will serve to confirm
the "Double Top" reversal pattern with a measurement objective of
RM0.90. Nonetheless, we do not rule out a potential rebound from as there is
fair chance for NOTION to stage a technical rebound in the short-term.
Source: Kenanga
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