Cypark Resources’ stock gapped up after breaking out above the month-long flag pattern the day before. Yesterday’s white candle also sent prices higher, bouncing off the 20-day Exponential Moving Average (EMA).
The bullish breakout was supported by a higher trading volume. A new short-term uptrend may be underway, underpinned by the higher lows sequence from the RM0.61 low and the 200-day EMA.
Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) continued to inch higher, keeping the positive momentum in place.
“We think that aggressive traders may want to go long now or accumulate on a pullback, with a stop-loss set at RM0.735,” said CGSCIMB in the recent Malaysia Retail Research Report.
Towards Uzma, the stock rose and formed a long white candle yesterday, breaking out of its bullish flag pattern with conviction. Prices also closed at the 52-week high, bouncing off the 20-day EMA.
The flag breakout on a higher trading volume, and coupled with the improving EMAs, keeps the bulls in command. Near-term upside is likely.
The MACD showed easing pressure while the RSI strengthened further, indicating a pick-up in buying momentum. CGSCIMB recommends aggressive traders to go long now or accumulate on a pullback, with a stop-loss set at RM0.725.
