IWCITY has limit up last friday following the RTO and the revaluation of the land in Iskandar. The counter has gained much interest since then. Is the counter worth buying at this juncture? Let's study the counter from purely TECHNICAL ASPECT.
First, the price has limit up last Friday, and yesterday, despite falling back in the later session and closed with a black candle stick. It is a clear signal of vast increase in the buying interest. The 4 long volume pillar has double confirmed the trend.
Moving averages are fanning upward, a sign of the bull trend.
RSI is at overbought area as the result of limit up. At this juncture, the RSI is still lower than previous high despite the price has moved significantly higher. if the RSI failed to form a higher high, the bearish divergence will be formed and it could signifies the change in the trend for short term.
Chart pattern wise, two upward pennants has formed, which normally indicates that the price could go down in near term. If the price failed to stay above the magenta support line @ RM 2.65, it could head towards the previous blue trend resistant @ RM 2.12 and then the trend support @ RM 1.90. Traders who aim to enter at safer entry price could pay attention to these price levels. If the price dropped below RM 1.90 level with significant volume, it could signifies that the uptrend is over and the price is heading south. So remember to cut loss.
Chart Impression: Despite higher transaction volume for yesterday and today, the price barely moved from yesterday's open market level. It shows that while buying interest is there, the buyer and seller are having a tug of war, from the profit taking activity. To summarize, the chart shows a main upward momentum with profit taking activity in near term. Contra player do trade with care.
Disclaimer: The above analysis is personal opinion and for reference only. Trade at your own risk. The author will not be liable for all loss arise from trading based on the above comments.
