Original Blog:http://www.geraldkohstockcharts.com/
In March 2019 after the rally, Dayang broke the RM1.40 weak support and the selling continued. On 25th March, the stock opened at RM1.27 and closed higher at RM1.35 with volume slightly higher than the previous day. This indicated that the demand was higher compared to supply. Subsequently the stock was traded between RM1.31 to RM1.44 with low volume. On 8th April, the stock gained 10% in a single day and closed at RM1.54 with high volume. However, RM1.30 tertiary test came after 5 days trading and the stock continued to test the RM1.30 support. On 18th April, the stock gave an impression of potential spring with a strong hammer. The spring was confirmed on 22nd April with higher closing price and volume. After two days spring, the stock is testing the RM1.30 support again.
Descending Triangle
The picture shows descending triangle is formed with support and resistance are being tested. Descending triangle is ambiguous and it could be distribution or re-accumulation phase by the composite man. It is hard to determine for the time being on which phase the stock currently possesses. I would monitor closely the price action before enter the trade. On the other hand, short term trader can enter position at RM1.30 and cut lost below the same price after the quaternary test.
