After more than two months of pullback, Oldtown’s share price finally arrived at the meaningful 100-day MAV line, which has never been violated since the company’s IPO. This represents an opportunity to accumulate Oldtown’s shares. The circles in the above daily chart highlight three occasions where the stock has managed to rebound off the 100-day MAV line.
We see prices stabilising above the 100-day MAV line, with no signs of reversal at the moment. Nevertheless, as the MAV line represents a key support line, traders could consider accumulating Oldtown’s shares at the current level and bet for another round of rebound. The stock could potentially rebound towards the RM2.27 major high or even the RM2.33 historic high. Cut losses should the price dips below the recent low of RM1.81, which could lead to a breakdown from the 100-day MAV line. Note that a decisive breakdown from the MAV line would trigger a major breakdown.
Hence, supports can now be found on the 100-day MAV line at RM1.90, followed by RM1.81, RM1.73 and RM1.65. To the upside, resistance levels are seen at RM1.96, RM2.15, RM2.27 and RM2.33.
Source: OSK
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