KLSE Technical Analysis
Nov 20th : Market Report on Vivocom. Close $1.74 with volume 68.24m.
1) It has now been exactly 3 weeks that Vivocom’s Rally had run. The Uptrend embarked on a very bullish surge up North with no sign of slowing down until its price was met with stubborn resistance at $2.00, with a dogged technical correction on Friday.
Let us read the Technicals & assess together what will be the most likely scenario that will happen next week.
2) EW Trading Methodology
a. Price go in to wave 4 correction zone ( $1.78-$1.62) and forming ABC wave structure, at the same time I observed an alternate wave count appearing with a weak wave 5 .
b. Both wave structures showed a high possibility occurring and validated if price hold above Friday low of RM1.69.
c. My personal view is that the support zone at $1.68- $1.74. price levels will draw in and attract tremendous buying activities, with internal wave structure of support emerging at these levels.
d. I am anticipating a rather complex wave 4 structure developing because the wave 2 correction has been straightforward so far.
e. I am also anticipating extended wave 5 structure to develop, which should occur as we have seen solid wave 1 & strong wave 3 rally for the past 3 weeks.
3.ATR and Beta Value
a. Vivocom Average true range(ATR) is 16 pips with a beta value 4.6. These two indicators basically measure a stock volatility against the KLSE average within a 10%(Risk/Reward) expectation.
It is saying that Vivocom trading range is about 4.6 time higher and more volatile than average KLSE stocks.
b. A stock with low ATR is equal to low opportunity whereas Vivocom’s 16 pips volatility is both healthy and conducive to robust trading which day traders, PDTs, IVTs, Algor players n punters love and adore. It means they can enter n exit with a 16 pips trading range within the same day n make handsome profits each time.
c. I expected Friday’s close to actually be at 1.83/1.85 price level. However due to day traders who collected at 1.70 n taking profits exiting, the closing price finally settled at 1.74.
Therein lies the strength n resilience of Vivocom’s shares, that it can withstand such heavy profits taking onslaught and still rebound to the 1.82/1.85 price levels.
This is a very critical n bullish point as the selling on Friday was not based on weakness, sell to cut loss kind of scenario. It was selling based on strength, exit with profits n renter again based on its high 16 pips ATR.
Based on this observation n backed by my 25 years experience, I remain super bullish on Vivocom resuming its strong rally for next week with both a tenacious n formidable rebound to breach the stubborn hurdle at $2.00 n to head towards 2.15/2.45 by end of next week or the week after.
The Bulls are still dominant in Vivocom with its uptrend intact and solidly constructive. Should weakness presents itself I am will buy at the support level
Go Vivocom go, KLSE SuperBull is still strong n raring to charge up.
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More articles on KLSE Technical Analysis
Nov 18th : Market Report on Vivocom. Close $1.86 with volume 33.4m.
Created by mwong3 | Nov 18, 2020
Nov 18th :Morning Session Vivocom cosed $1.83 with volume of 23.1M.
Created by mwong3 | Nov 18, 2020
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