Saudee consolidate upon its historical high and expected to spike up to the new high soon, there is a resistance and strong selling near RM0.56, as Saudee to provide food for 400 schools, this news would likely to create momentum for it to break beyond the resistance. As discussed before, in this situation, market sentiment is very positive, and once profit takers has been done the selling, it will rally into another higher level.
This type of formation can be very positive and at the same time very vulnerable for pullback, as of this reason, it is better to set closer stop loss price at around under 5% of the buying price, or RM0.53 when it fails its flag pole formation.
As what has spot in the last trading day, the sellers that deposited within RM0.55 – 0.565 has been settled but due to market sentiment is so weak amid political reason and dumping of foreign fund, the selling pressure has re-deposited in and fails it from breaking the resistance.
However, if market sentiment to stabilize down by the coming trading days, high possibility that this counter will retest its new high and subsequently rally to RM0.59 target price, if it is able to overcome RM0.56.
KLCI falls below previous low of 1792 points, and this fall didn’t brought down most of the equities to the extent that allign with the loss of index, the loss of KLCI mainly due to weaker quarterly result by many of the bluechips and magnified by political issue. Hence, this will create a very good opportunity to accumulate stocks which are strong in the market trend and yield high dividend payout from their tumbled price, there is no sign of economy crisis will arise and the flooding of QE money and China railways plan will indirectly assisting our economy.
SAUDEE (5157) - Technical Bread #35: Technical play- Saudee
http://chartian.com/technical-bread-35/
