Since mid-March, CHOOBEE’s share price has achieved tremendous 56% gains (from RM1.60 to RM2.50). However, we reckon that it is time to take profit as the technical picture signals that further weakness is developing. Chart-wise, an “Evening Doji Star” has taken shape on the daily chart, which signals that an uptrend is about to reverse from here on. Readings from the Stochastic and RSI (14) indicators suggested that selling pressure is piling and CHOOBEE is likely to extend its losses over the next few days. We suggest traders take profit for now, and maybe look to buy back at a lower entry price of RM1.94.

 

Source: Kenanga