Original Post : https://www.investingnote.com/posts/1220353
Hi all, according to what i posted on 16 January saying that Aturmaju Resources Berhad(7181) is a worth looking stock counter makes me interested to do a proper TA on this stock. Here is my analysis and you can download the PDF file for better reading.
$ATURMJU(7181.MY) Aturmaju Technical Analysis - Uptrend
Overview: (Daily Chart)
Aturmaju Resources Berhad is moving in an big uptrend since June 2018. The breakout above the 0.500 level confirmed this upward trend. The probability is high that the trend will continue and that rising prices can also be expected in the future.
Also the moving averages of the MACD are bullish crossed and are already above the zero line. This is another long signal.
The upward movement has increased rapidly in the last few days with a lot of volume, so it is normal that a smaller correction occurs. Yesterday's correction should be seen as pure profit taking by investors.
After completion of the correction, the last local high at 0.600 should be reached within a very short time.
4 Hour Chart
If you take a closer look at the price movement from the 4 hour chart, you can clearly see a gap close. In addition, the price hits the last local high at 0,465, which is to be regarded as support.Short-term traders should definitely keep an eye on the current price mark, as increasing volume is very likely. In addition, there are two more signals for a quick long entry.
The gap close is additionally a movement to the 50 Fibonacci retracement. Often there are many buyers at the 50 Fibonacci Retracement who want to take advantage of the trade from the correction.
For traders who prefer to trade with moving averages, there is also a clear buy-signal. The last price increase resulted in a crossing of several exponential moving averages. The 20 EMA, 50 EMA and 100 EMA currently fan out cleanly. In order to find the perfect entry, you should wait for the smaller units such as the 15 min chart to turn the trend in the direction of the higher trend.
Image 5&6: Summary
Aturmaju Resources Berhad is a clear buy recommendation. Especially short-term traders should be able to realize quick profits. But for the longer-term oriented, the current market situation is favorable.
The price is in an intact and solid upward trend. The gap close is additionally supported by a Fibonacci reatracement and the cross of several EMAs is another clear buy signal.
It's deﬁnitely not too late. The situation is very favourable at the moment. The ﬁrst target at 0.600 is only one target. I would recommend to divide the position by three.
For example you buy 3000 pieces for 0.46. 1000 you sell at 0.600 (0.14 per piece proﬁt); 1000 you sell at 0.750 (0.29 per piece proﬁt) and the last third can be held if the prices continue to rise.
So you quickly secure a small proﬁt and still have the chance to make a big proﬁt. The chance risk ratio is better with this method.