Technically, DAIBOCI is treading on thin ice after the share price succumbed below the 20-SMA support line on the downward-sloping trend channel. As the share price is trending downwards to the “Ascending Triangle” apex, trader should keep an eye for breakdown risk as key indicators are still depicting a bearish picture. Should the share price fail to hold above the triangle support @RM3.40 (and also 100-day SMA), we foresee potential downside correction to lower support @RM3.30 followed by RM3.00 (Fibonacci Retracement). On the flipside, should the share price breakout above the triangle overhead resistance @RM3.50 in a decisive manner, it could mean a trend reversal for the stock.

 

Source: Kenanga