Censof, according to RHB Research’s technical analysis report (October 17), is eyeing for an uptrend rebound as it attempted to move past the MYR0.295 immediate resistance last Friday despite retracing strongly from the intraday high. If the buying interest re-emerges and surpasses that level, the bulls are expected to drive the stock towards Aug’s high of MYR0.315, followed by MYR0.34 ie the high of 11 Feb. However, the counter may reverse direction if it falls below the MYR0.26 support, forming a “lower low” bearish structure.
This counter is set to propel towards the historical high as it rebounded above the 21-day average line, surpassing the
MYR3.33 resistance last Friday – coupled with stronger volume. If the buying interest sustains above that level, the
stock may surge towards the MYR3.50 mark – the high of 22 August, before reclaiming the historical high of MYR3.59 – 5 September’s high. If it falls below the MYR3.19 support, the stock may undergo a reversal, as it forms a “lower low” bearish pattern beneath the average line.