Monday, 1 April 2019
Gadang (9261): Rebound after the Long Retracement!
It has been in a downtrend since July'17 up to Dec'18.
However, the price has started to pick up in Q1 2019 and repeatedly tested the previous high point which is RM0.67.
It had once broke out from its resistance recently with an abnormal high trading volume, yet, it could not maintain the outstanding momentum and the price retraced and touched the latest support line.
After the long wait, finally, it has broken its resistance again today!
We should see whether it can standstill above the resistance point and fibo level of 0.236 which is around RM0.676 for three trading days.
If the price manages to stay above, since then, RM0.67 will become a strong support point in short term while.
Another good thing of Gadang is, the stock price is now moving above all MA lines.
It is definitely a sign of bullish!
The stock broke out of MA200; CCI is trending upwards; and MACD is making a positive cross.
Technical wise, the price is still moving through an uptrend triangle pattern.
Next target price will be the previous high point, which is RM0.735 (approximately 6% of return).
Looking through its background, currently Gadang has an outstanding order book of RM1.43bil, it shall provide a stable income few years down the road.
But I reckon the coming report of Q3 FY19 will not be too encouraging, as quarter of preceding year has recognised profits from completed projects from both construction as well as property.
Hence, the downtrend risk is still possible to happen.
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