Sarawak Consolidated Industries Bhd (SCIB) has been continuing its uptrend beyond the critical RM0.500 level in the past few trading weeks. As your fellow trader, we noticed the few key pointers:

1. The stock has beautifully played out the Volatility Contraction Pattern (VCP). This is often a precursor to substantial price moves, especially when accompanied by increasing volume, as is the case here. Following a 230% upward move, the stock has broken out of this VCP formation.

2. Support & Resistance Levels:

Support: The latest base appears to be formed around the 0.465 level. This can be construed as the immediate support, with the stock showing no intention of revisiting the previous breakout point.

Resistance: The 0.520 - 0.525 range is acting as the current resistance, marking the stock's 52-week high. A decisive breakout above this level, especially with high volume, could pave the way for newer highs.

3. The recent uptrend is supported by increased volume, particularly evident in the latest bullish candlesticks. This validates the strength of the move, suggesting a genuine interest from institutional players. The marked region highlights a stark volume increase compared to the blue-boxed accumulation phase, indicating strong buying pressure.

4. SCIB's chart indicates that the current rally is far from over. The stock seems to be taking a brief pit stop before potentially continuing its upward trajectory. Traders and investors should be vigilant for signs of a breakout above the resistance, as that could signal the commencement of the next rally phase.

What do you think of SCIB’s rally?