This stock showing strong nature in pressure market
The US trade war with China has set to outbreak anytime while Donald Trump has signed the Steel and Aluminum import duty against China, overall world market faced strong selling pressure upon this.
As for traders, this should be view as a great opportunity because the world market trend are still in uptrend and bullish state, take a look on Dow and Hang Seng index, you will find both stocks are pointing north even facing correction. However, this is just nice for the long bull to take a breather.
In KLSE, we notice one stock to show strong holding nature even in this negative sentiment of market, it is one of the strong stocks in this period that we would like to introduce.
The chart no doubt is showing a nice uptrend, moving upon its MA 20, what drag attention is the recent correction, for RM1.90 to RM1.40, it is unusual base on what has performed so far. But traders have to bear in mind that this correction was cause by a global issue, which is quite hard to avoid, but from the recent slump of market, its outstanding performance confirm its chances to go up.
Candle 1 showing the strong bull move on a day where over 500 counters are down and candle 2 showing the resistance of the price to drop when the fears hit, the dragonfly candle clearly tells that, once the fear is over, this stock might catch up the bull an continue to break the new high.
Our first target of RM1.53 has hit, next target would be around RM1.62 and then RM1.80, although it is still far from the RM1.92 historical high but with the company’s strong ability to secure more contract, it is not difficult to get back the price to that level. To avoid market uncertainty, trade this stock with the nearest target of RM1.53 and RM1.62. Trend voided if RM1.30 unable to hold, that’s also our cut loss level.