Astro has been drifting lower in the past 10 months, from its recent high of RM5.80 recorded in w/e February 23 to an all-time low of RM3.06 on September 24th. Thereafter, the share price underwent a sharp rebound, which tested but failed to break above its prevailing downtrend line. In that throwback rally, Astro hit a reaction high of RM4.20 & dropped back before doing a 'Test of the Low' on November 30th. In that test, the stock did not make a new low & recovered. In the last few days, Astro was again hitting its medium-term downtrend line; this time at the RM3.60 level. A break to the upside of this downtrend line would signal the end of this downtrend. The share price may commence on an uptrend course or more likely to move in a sideway manner before going higher (if it can recruit enough buying interests).
If Astro can break above the RM3.60 level, the stock could be a good medium-term BUY. Accumulate slowly, with protective stoploss set at RM2.95 (i.e. below the recent low as well as the psychological support of RM3.00).
Chart: Astro's weekly chart as at January 4 (courtesy of Quickcharts)
No comments:
Post a Comment