Advertisement

Thursday, March 29, 2018

PMetal: Downtrend Has Begun

Today PMetal finally succumbed to the selling pressure and crashed thru the recent low of RM4.73. It came within a hair's breadth of touching its 200-day SMA line at RM4.23. its intr-day low was RM4.29. Despite the rebound, PMetal is likely to commence on its downtrend. Thus, this stock is likely to under-perform the market.


Chart 1: PMETAL's daily chart as at Mar 29, 2018_4.15pm (Source: Malaysiastock.biz)

The likely reason for the technical breakdown in the share price is the weakness in the prices of aluminium. From the chart below, we can see that aluminium has broken its accelearted uptrend line at USD2100/mt.


Chart 2: Aluminium's weekly chart as at Mar 28, 2018 (Source: investing.com)

No comments: