Yesterday, OLDTOWN rose 3 sen (+1.46%) to end at RM2.08. Despite thin trading volume for now, we believe that the technical picture still looks interesting after it confirmed a “Descending Triangle” chart pattern. Traders should pay close attention to the chart pattern, as this could act as major bullish reversal pattern. Short-term technical outlook is bullish as the share price stays above all the 30-, 50- and 100- days SMA levels. We believe that the probability for OLDTOWN to stage a rebound is high, following a positive crossover signal issued by the MACDSignal line. Immediate resistance level is capped at RM2.20 (R1) and should this resistance be taken out, OLDTOWN could possibly extend its gains towards RM2.38 (R2) and RM2.65 (R3).

 

Soource: Kenanga