Since early 2018, the lack of demands prompted Canone to drop and tested the RM1.90 support. On 14 December, the high volume indicated a possible demands at the price above RM1.90. Here, the stock continue to trade above RM1.90 and rallied to RM2.79 on 17 January.
After consolidate for 1.5 months, the rally recommenced with higher volume to RM3.07. This is 62% gain in 3.5 months. On 10 April, the upthrust with high volume showed a possible selling or resistance at the price of RM3.43. After established RM3.03 support, the stock rallied to RM3.43 with highest volume in 18 months. Strong selling forced the stock to retest RM3.03 support and another upthrust with high volume occured on 31 May after the quarter report. Currently RM3.43 serves as a strong resistance.
I reckon the stock will drop on Monday to retest the RM3.03 support. Probably this is a classic distribution at RM3.43 resistance. Trade Safely. (Click here for full picture)