The daily chart shows that the good support for the stock is at RM1.70, which is the intermediate term uptrend line as well as the 5% downward displaced 200-day SMA line. BIMB is trying to break above its short-term downtrend line (which may be represented 20 or 50-day SMA lines). If it succeeds in doing so, it would test the medium-term downtrend line (RR) next at RM2.00. A breakout above the RM2.00 level could signal the continuation of BIMB's prior uptrend. The first target would be its recent high at RM2.50 and thereafter its strong horizontal resistance at RM2.70.
The safer approach to get into this play is to buy as near to the RM1.70 mark as possible. Add to that position if the stock can break above the RM2.00 mark.
Chart 1: BIMB's daily chart as at Dec 14, 2011_10.30am (Source: Quickcharts)
Chart 2: BIMB's monthly chart as at Dec 13, 2011 (Source: Quickcharts)
3 comments:
Hi Alex,
How about Affin? Is it getting up to RM3 in anytime soon?
regards
HI HKLoon,
Affin may test the RM3.00. But it must first of all cross the RM2.95-2.96 resistance. If it can do that, the RM3.00 mark shouldn't be an obstacle. Thereafter, it may test the medium-term downtrend line at RM3.25.
Hi Alex,
I thought the swing of the BIMB over the past few days were due to the IB trying to to lower the value of BIMB-CA...
regards,
DenveR
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