Sunway is taking a breather after the recent sharp sell-off of its shares, following the violation of the 50-day MAV line that supported its uptrend for about 6 months. The stock is now consolidating between RM2.27 level and RM2.46 level. A violation of either one of these two levels would determine its next prime move. Having said  that, as the stock has recently violated the key 50-day MAV line, there is a possibility that it will retrace further after this consolidation phase.

In early April, Sunway experienced a major breakdown  after it violated the 50-day MAV line which  has  supported the previous 6-month uptrend. Following the violation of this line, its share price also declined rapidly.

Meanwhile, the stock is now consolidating the recent sharp sell-off by moving sideways within the RM2.27-RM2.46 area. A breakout or breakdown from these levels would determine Sunway's next prime move. As the stock has just violated the important 50-day MAV line, the odds are in favour of a further retracement. In other words, the risk that the RM2.27 level will be violated is greater than the chance of breaking the RM2.46 resistance level. The first downside target is pegged at the RM2.17 level, followed by the RM1.97 level. 

Having said that, should a breakout from the RM2.46 level occur, the stock is expected to experience a short-term rebound that may see the stock retesting the 50-day MAV line which is now situated at the RM2.56 level.