AEON Credit’s share price has been going up at an aggressive pace since December 2011. After rallying for about a year, the stock has constructed a clear uptrend in the weekly chart.
Going forward, we do not expect AEON Credit to face heavy selling pressure as long as it continues to trade above the uptrend, as illustrated in the above weekly chart. Meanwhile, it still looks like the stock may be able to create a new historic peak soon after creating a “Morning Star” right above the uptrend line two weeks ago. Moreover, the stock’s previous overbought situation, as indicated by its weekly RSI, has already adjusted closer to the neutral zone. This means that the stock has the right ingredients to continue extending its uptrend.
From the current level, look for an immediate resistance at the RM13.72 level, which is the only remaining hurdle for the stock. Major support can be found at the RM11.20 low created three weeks ago. Note that should the RM11.20 level be taken out, there is a possibility that the one-year old uptrend will be at risk of being violated.
Going forward, we do not expect AEON Credit to face heavy selling pressure as long as it continues to trade above the uptrend, as illustrated in the above weekly chart. Meanwhile, it still looks like the stock may be able to create a new historic peak soon after creating a “Morning Star” right above the uptrend line two weeks ago. Moreover, the stock’s previous overbought situation, as indicated by its weekly RSI, has already adjusted closer to the neutral zone. This means that the stock has the right ingredients to continue extending its uptrend.
From the current level, look for an immediate resistance at the RM13.72 level, which is the only remaining hurdle for the stock. Major support can be found at the RM11.20 low created three weeks ago. Note that should the RM11.20 level be taken out, there is a possibility that the one-year old uptrend will be at risk of being violated.
Source: OSK
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