This counter, according to RHB Research’s technical analysis report (September 19), is poised to undergo a bullish breakout, as it tested the immediate resistance of MYR0.465 on high trading volume last Thursday. The stock has been charting a “higher high” bullish candlestick, while trading volume picked up – which showse that strong bullish momentum is in play. If the breakout happens, the stock should scale towards MYR0.49, followed by MYR0.53. On the flip side, a fall below the MYR0.43 support level would indicate that the negative momentum may be in effect.
Velesto is scaling northwards, since it broke past the immediate resistance of MYR0.11 on strong volume. Trading volume has also been happening while its share price has been increasing, so this indicates that the bulls are charging ahead. Riding on this positive momentum, the stock should test the next resistance pegged at MYR0.125, followed by MYR0.15. Towards the downside, a fall below the MYR0.09 support would negate the expectation.