In the past 2 quarters, both revenue and profit had recovered somewhat. Today, Gtronic share price broke above the line connecting the peaks for the past 10 months at RM4.20. On the daily chart, we can see that its lagging indicators have turned positive, with MACD in positive territory and ADX trending higher & above the 20 mark.
Chart 1: Gtronic's daily chart as at Feb 2, 2017_2.58
The weekly chart shows the overhead resistance from the horizontal lines at RM4.50 & RM5.00. Note that MACD has crossed above the zero line while ADX is likely to curve upward soon.
Chart 2: Gtronic's weekly chart as at Feb 2, 2017_3.03
If Gtronic can stay above the breakout level of RM4.20, it could be a good trading BUY. For more on this stock, please check out my previous result update when I rated it as a SELL. Don't be deterred by the negative rating as the recent result of MPI has shown us that the performance of the technology sector is still very promising. I will re-examine the earlier rating when Gtronic announces its financial result for QE31/12/2016 in 3 weeks time.
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