Dayang no longer a hot stock?

After my previous Dayang post on 17.3.2019, the next day Dayang shows a red candle and another red candle on 19.3.2019 with high volume. The red candle breaks the RM1.40 support line. Honestly, I did not anticipate the price to drop so fast in two days time.

RM1.40 is a weak support line.

The green candle on 20.3.2019 shows demands at the trading range between RM1.33 to RM1.44. If the trader that do not know how to read the chart, probably they will rush in to buy thinking it is cheap. Unfortunately, the next day shows low volume and the price begin to drop again on 22.3.2019 with low volume compares to 20.3.2019 volume. This indicates a weak demand.

What is the next support? When is the right time to buy?

The next support is RM1.06. However, we do not know is it strong or weak support until the chart begins to form. Patience is required for this counter. I reckon the price is weak and trader should not rush in to buy this counter.

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Author: Gerald Koh