Trop may have broken above its intermediate downtrend (using the 100-day SMA as proxy). The last time it had a similar breakout in Mar 2014, the stock had a decent rally from RM1.35 to RM1.65.
Chart 1: TROP's daily chart as at Apr 10, 2015_9.15am (Source: ShareInvestor.com)
Trop's monthly chart shows that the stock is now testing a strong downtrend line, R2-R2 at RM1.10. It has a strong support from its gradual long-term uptrend line, SS at RM1.00.
Chart 2: TROP's monthly chart as at Apr 10, 2015_9.15am (Source: ShareInvestor.com)
Based only on technical consideration, Trop could be a potential trading BUY. For long-term investment, we need to look into its fundamental. Nonetheless, I believe the RM1.00 should be a strong support and possibly a good entry level to this stock.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, TROP.
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