I have a friend who is still holding this stock at a very high price about RM2.30 in July 2015; the price he thought it was the bottom since the price touched this support three times between Jan and July 2015. He didn’t know it was the third test of support RM2.20 before it went down again. He should have cut lost when it started to break RM2.20 support. The anchoring effect prompted him in thinking this stock will go up since it was one of the good company in the
Is it a good time for him to average down the price he bought?
A tough question to be honest. If he knows how to play the spring method, perhaps he should accumulate some stock in January 2019 at the price below RM0.27. After the price went down to RM0.26 it shows no sign of going down again. On the 8 February, the candle confirmed this spring effect and the price went up to RM0.33 on 22 February. The price was traded between RM0.30 to RM0.33 and it broke the RM0.33 resistance line on 13 March. Finally, the price went up to RM0.37 and it was traded at RM0.345 on 22 March. This is the sign of strength, I would suggest my friend buy some and cut lost below RM0.34.