The Alpha Trader


Publish date: Sun, 12 Feb 2023, 02:50 PM
With over 20 years of trading experience in financial markets, this blog is intended to share with fellow traders how I identify good trade setups from a combination of fundamental, technical and situational considerations

AppAsia Bhd (AppAsia) is involved in the development and sale of information communication technology (ICT) security systems and provision of related professional services. It operates through ICT Security Business, E-Commerce Business and Management Services. The ICT Security Business segment provides solutions, product and services in the information technology security sector.

The premise of this trade setup is a thematic play on the cyber security solutions/information communication technology (ICT) security sector. The other stock that Alpha Trader likes and first highlighted was Systech Bhd on 11 January 2023 at RM0.25. The company is in the cyber security solutions business and continues to make new highs at  RM0.37 on Friday, 10 Feb 2023!


The daily chart pattern is similar to a stock that was highlighted in the latest last post on EG Bhd, where it is exhibiting a rounding bottom formation. What is good about about this pattern is it gives a well defined target on the charts to aim for. From this chart pattern, AppAsia does not have any resistance until the RM0.26 to RM0.30 levels!

Zooming in further on the daily charts, we can see a clear break out above the pivot point of RM0.12 with heavy volume on 8 February 2022. This breakout has further credence since on T+2 settlement day on 10 February 2023, where there was little selling pressure and price still closed at the 52 week high of RM0.14. This all points to very strong momentum on the upside, as we never fade a stock that continues to make new highs!


We will look at 2 other charts that are trading in the same sector/with the same theme which also show very bullish price action.



Systech continues its strong motive move breaking through the resistance turned support line of RM0.33. The breakout move has been accompanied with huge volume.There is little resistance for this move until it retests the all time highs of RM0.52!



Infoline chart has just been on a tear since July 2022. From its pivot breakout point of RM0.45, infoline Tec is up an astounding 120%!


Stocks that are in play often have some catalyst or theme that explains its moves. It is our job as traders to find these stocks and making trades that offer the best risk to reward propositions. Will AppAsia perform as well as Systech or Infoline Tec? All indicators seem to be pointing in the right direction!

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.

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