Following
our previous technical report on Astral
Supreme (ASUP) dated 10th Aug, the share price went on to rally from RM0.305 to
a high of RM0.445 seen last week. It
subsequently formed a series of bearish reversal candlesticks thereafter
before retracing its earlier gains in the month to close at RM0.33 yesterday.
Though the share price has declined 25% off its high of last week, the medium
term uptrend remains intact despite the sharp selloff. We reckon that the share
price may still be subjected to profit takings although bargain hunting could
emerge at the RM0.29-RM0.32 levels, just above the trend line. Traders who had
previously missed the boat could use the current weakness in the share price to
jump aboard given the still elevated volumes seen.
On the
weekly chart, ASUP's share price is currently at the 38.2% Fibonacci
Retracement Level (FRTL). Should this
level be overcome, the next level to look at will be RM0.30, the 50% FRTL. The
medium term uptrend remains intact and the oscillators are supportive of this view.
Hence, we view the recent downward moves as just a correction within an overall
uptrend.
Source: Kenanga
No comments:
Post a Comment