Sedania Innovator is poised to rebound from the recent pullback as it bounced off the 21-day SMA line yesterday, testing the MYR0.24 immediate resistance – forming a “White Marubozu” bullish candlestick.
RHB Retail Research, in a note today (April 27), said If a breakout happens, the bullish bias may drive the stock towards the MYR0.28 recent high (19 Apr’s high), followed by the MYR0.30 threshold.
The high likelihood of a bullish reversal to occur is also supported by the 21-day SMA line curving higher, suggesting a short-term bullish trend.
However, falling below the MYR0.22 support will negate the bullish setup, forming a “lower low” bearish pattern.
Kronologi Asia is seen also eyeing to resume its uptrend movement as it bounced off the 21-day SMA line, heading towards the MYR0.60 resistance yesterday, coupled with improved trading volume.
If it manages to surpass that level, the stock may propel towards MYR0.65, or 6 Jan 2022’s high, followed by the MYR0.70 mark.
Note that the 21-day SMA line has been on a steady uptrend since Dec 2022, and RHB expects it to persist in the coming sessions.
However, falling below the MYR0.55 support will void the bullish expectation and set a major correction.