Tuesday 18 December 2012

AEON CO. (M) Bhd - Safely Above 50-week MAV Line



Since  AEON created a massive “Long Legged Doji” bearish reversal pattern  a  few  weeks  ago,  the  stock  has  been  in consolidation mode  until last week’s rebound emerged. This rebound may  be  perceived as an initial sign of the  end  of its consolidation  phase  but  would  only  be  confirmed  if  it  can  break  above  the  peak  represented  by  the “Long Legged Doji” situated at RM13.18.

Nevertheless, as long as AEON is still trading below RM13.18, there is still risk of the stock retracing further, especially after it violates the RM11.50 and RM11.00 levels, which represent the mid- and opening points respectively of the “Long White Day” created on the first week of October this year.   

Note  that  during  the  2009-2011  period,  AEON  was  trending  along  the  50-week  MAV  line,  and  the  uptrend  only  began  to become steeper in early 2012. There is a possibility that the uptrend will be neutralized back towards the 50-day MAV line, especially with the creation of the massive “Long Legged Doji”.

Hence,  from  the  current  level,  look  RM11.50  and  RM11.00  as  the  immediate  support  levels.  To  the  upside,  the  only remaining resistance would be the RM13.18 historic peak.  
Source: OSK

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