Alpha Trader first highlighted Microlink in a previous post dated on 7 Nov 2022. The stock was trading at the RM0.93 level and has since continued rising to its current price of RM1.11, not far from its all time high price of RM1.13 reached today. So, how high can the price of Microlink go from here? 

As for possible price target scenarios, let us look at 2 case study charts that show similar characteristics.

CASE STUDY 1: TELADAN SETIA BHD

Teladan Setia made a nice motive move from the breakout pivot point of RM0.675 on 27July 2022 and managed to hit the 100% fibonacci projected level of RM1.35 on 14 November 2022. It has managed to achieve this move in 4 months without any major newsflow!

CASE STUDY 2 - PERAK TRANSIT BHD

Perak Transit made a breakout motive move from its pivot point of RM0.65 on 5 May 2022 and continued moving steadily up hitting the 100% fibonacci projected level of RM1.30 on 2 Dec 2022. There was some positive news flow at the RM0.98 level, with the emergence of Eddie Ong as a major shareholder. However, price always precedes newsflow and recognizing price patterns early is key in capturing sizeable moves in stocks.

MICROLINK BHD DAILY CHART

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Microlink made a clear breakout move from its pivot point of RM0.65 on 10 October 2022. It has reached the new all time high of RM1.13 today (7 Dec 2022), which represents a gain of 73% in just 2 short months! 

Based on the above 2 base case studies, Microlink could continue going up to a minimum wave objective of RM1.30, which would be a 100% move from the breakout pivot point of RM0.65!

CONCLUSION

When stock prices trend higher without much retracement (especially when trading at all time highs), it means that that there is big accumulation for that particular stock. Many traders/investors are always fascinated with finding a reason or justification for the big moves. The right thing for traders to do is to understand and respect the message that price patterns of a stock is trying to convey! The trend will always be your friend until it decides not to be!

Disclaimer: This blog is created for sharing of trading ideas only. It is not in any way or form meant to be an inducement or recommendation to buy or sell any stocks. Consult your financial consultant before making any financial investments.