Technically Speaking – A strong consolidating pattern and breakout-soon gem

The recent sell down on Bursa Malaysia had certainly damaged upward momentum of almost every stocks. However, ANNUM shows a relatively stable price movement despite the volatility in the recent trading days. In fact, there is a recent spike in share price that shows interest in the company amidst the gloomy market.

Now let’s look at a few technical studies of ANNUM.

Moving Average – The company had certainly showed a flattening MA of 30, 49, 100 and 200. This indicates an obvious consolidating signal of which the stock is trying to decide which direction it is going next.

Bollinger Band – The BB had shown a same consolidation pattern as it was derived from the MA as well. However, the band seems to be consolidating and recently due to the volume spike, the upper band and lower band is spreading further – indicating a soon-to-be deciding direction for the company.

MACD – Next, we have the typical MACD indicator to determine the potential momentum of the company. This is slightly different from the MA as well as BB as a very minor golden cross had occurred below the 0 level, indicating an upward momentum for the stock.

Volume – Normally, a spike in volume, especially one in 52 weeks must be indicating something’s brewing for the company.

Rationally, the graph tells us that ANNUM is trading at a flattening trend, or the share price is consolidating at the moment. The volume and MACD however, shows a slightly positive signal for the company, most likely a change of hand in terms of shares for operators.

Also, the company’s share price remains relatively stable despite the market “crash”. I think this is hinting that something is brewing for ANNUM!