COASTAL’s share price recently jumped 24.0 sen or 10.57% to RM2.51 on incremental trading volume, trading near the stock’s multi-year support level. A long white candlestick has formed after the ‘Doji’ candlestick, setting up a potential uptrend reversal direction post the recent sell-down on the stock. MACD indicator has also started to converge on a bullish divergence, supporting the bullish outlook. Both Stochastic and RSI indicator are also reversing strongly from its deep oversold region, laying a hand on the reversal bias. Despite the uninspiring Brent prices recently, we view that strong buying support emerges at the share’s multi-year support level. Thus, we advocate investor’s to buy on weakness into this stock while anticipating the share price to retest its 50-day of RM3.42 (R2) in the mid-term. Meanwhile, we place a strict stop-loss 3 bids below the multi-year support level of RM2.20 (S1) at RM2.17.
Source: Kenanga