Aturmaju Resources Bhd (ARBB, 7181) Technical Analysis May 2020

*Disclaimer: I own shares of ARBB

ARBB Monthly Chart

The monthly chart shows ARBB ranging between RM0.5 to RM0.75 from 2005 to 2017. It spend most of the time in this range for more than a decade, only breaching above this range briefly before falling back into the range.

In 2017 though ARBB slipped below the RM0.5 level and for the time being as of 2020 seems to be forming a range between RM0.1 and RM0.5.

Trend

The monthly chart shows that ARBB is currently trading in a range.

Pattern

The monthly chart shows ARBB potentially forming a double bottom pattern (Yellow rectangle). It may trend towards and test the RM0.5 level.

Zooming into the weekly chart, ARBB can be seen to have broken out of a triangle consolidation pattern with a potential target price (TP) of around RM0.4 (purple line and arrow).

Weekly chart
Daily chart

The daily chart shows prices moving in an uptrend, summarised by the MA9 and MA21.

The DMI (ADX and DI) shows that prices are in an uptrend, though not yet a strong uptrend.

Daily chart inverse head and shoulder

An inverse head and shoulder may also be seen on the daily chart with a breakout point of around RM 0.275 which is supported by the MA9 and a potential TP beyond the RM0.4 level.

Conclusion

Taking into consideration all the pictures painted on the various time frames, ARBB may be retesting the RM0.5 level. RM 0.4 may be seen as a potential resistance area though. Immediate support can be taken at the RM 0.275 area with a final support of RM 0.1.

I must stress the importance of keeping in mind that the market is still in uncertain territory, and that overall, the bear is still dominant. You can read more on this here:

As such, one must be extra mindful of risk and money management when considering long positions and be wary of potential resistance levels on the higher time frame of the particular stock as well as that of the market.


Want to get more technical analysis ideas? Don’t forget to sign up to our newsletter. Just note down your best email and click the subscribe button:

Subscribe to Netflyp Finance
Loading

Leave a Reply

Back to Top