CCK Consolidate Bhd Technical analysis May 2020

A word of caution

Please don’t forget that we are in May. While it is not a hard rule, the Sell in May and go away (until around November) does seem to have its merits. I have also highlighted in a previous post that we are in a downtrending market with the likelihood of a subdued long term outlook. However should history repeat itself – again – we may see some bullish movement in the shorter term. My hope is that this will be the case, hence the reason that I am looking out for potential short term trading opportunities. CCK is one of my picks for short term trading.

*Disclaimer: I do own CCK shares

Pattern trading

Ascending triangle breakout on the weekly chart
Common indicators seem nicely aligned on the daily chart

CCK is a potential ascending triangle breakout on the weekly chart and daily charts. It will however need to maintain above the upper border of the triangle ~ RM 0.52 till this weeks end for the movement to continue into next week.

The technical indicators on the daily chart support further upwards movement of the stock.

Weekly chart technical indicators

The weekly chart is also supportive of a bullish move though the DMI is yet to indicate a strong uptrend.

Failure to maintain above the triangle may indicate a failed breakout. Short term traders may want to consider this as a cut loss signal and must closely monitor the price movement through this week to the weeks close.

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