Since May 2017, Ekovest had dropped from RM1.40 and found support at RM0.41 in December 2018. After consolidating above RM0.41, the stock rallied to RM0.58 in January 2019. At that time, the stock tested the RM0.51 support and the secondary test indicated it was a strong support (Point A). Subsequently, the stock was traded between RM0.51 and RM0.60 for two months. On 25 March 2019 (Point B), the stock penetrated the support with low volume. Although it was traded below the support, the daily trading range was narrowed and no sign of weakness. On 1st April 2019, the stock rallied above RM0.51 with higher volume. Aggressive traders would have entered this trade and cut lost below RM0.51. The rally came on 8th April 2019 and tested the support again on 17 April 2019 (Point C). After the revival of Bandar Malaysia news, the stock extended the rally to RM0.97 with 78% gain in three days’ time (Point D).
The private placement announcement on the next day (23 April 2019)
Presently the stock is unable to further rally above RM0.97 and traded at RM0.875. I reckon the high volume and the super rally at RM0.97 is an upthrust. Furthermore, the issuance of private placement might force the stock to test the next support.