Inari (0166) Breaks Triple Tops Formation

Inari formed a head-and-shoulder formation back in October 2018. The climatic sell forced the stock to break RM2.15 support and the selling persisted for 2 months. On 3rd January 2019, the stock gapped down with a strong supply and closed at RM1.255. On the next day, however, the price closed at RM1.21 and it seemed that the buyers could be absorbing the supply. Here, the supply was tired and the automatic rally soared on 7th January 2019.

The rally continued and found a resistance at RM1.67. That was 38% gain in one and half months period. The secondary test on 22 February 2019 provided a strong support at RM1.485. Short term trader would have entered position on 15 March 2019 and cut lost below RM1.485 after the tertiary test. Here, the stock rallied and the triple tops formation was formed on 5th April 2019. The range narrowed as the stock approached the top of the range.

The next supports

The promising triple tops showed no sign of weakness and it rallied above RM1.78. For the preliminary observation, RM1.75 is the next support with a short term support at RM1.78. Cut lost should be made if the supports are broken. (Click here for full image)

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Author: Gerald Koh