Advance Synergy’s stock rose and formed its second white candle yesterday, with prices pulling further away from the Exponential Moving Averages (EMA).
“The stock closed strongly, ending the day at a new 5-month high of RM0.165, supported by a spike in trading volume,” said CGSCIMB in the recent Malaysia Retail Research Report.
The breakout of its rectangle pattern, coupled with the higher highs and higher lows from the RM0.12 low, suggests a new short-term uptrend may have begun.
Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have hooked up further, which are supportive for the current breakout move.
CGSCIMB thinks that aggressive traders may want to go long now or accumulate on a pullback, with a stop-loss set at RM0.135. This breakout move may see prices climb towards the historical resistance at RM0.185 and RM0.205 next.
“Towards Aneka Jaringan, the stock climbed and broke out of its month-long triangle pattern yesterday with a white bullish candle. Prices also pulled away from the 20-day EMA, underpinned by the rising trading volume,” said CGSCIMB.
The said breakout suggests that its consolidation over the past month may be completed, and more upside is on the cards next. The improving EMAs are supportive as well.
The MACD just confirmed its golden cross while the RSI has strengthened further, indicating a positive momentum. Similarly, CGSCIMB recommends aggressive traders to go long now or accumulate on a pullback, with a stop-loss set at RM0.195.
“Follow-through buying may lift prices to test the historical resistances at RM0.245 and RM0.265 next,” said CGSCIMB.
