The monthly chart shows that MRCB is trading in a downtrending channel with potential support above RM0.3 (green area). It appears to have touched this support area thus may be rebounding. Long term target price (TP) on the monthly time frame may be set as the upper boarder of the channel.
Shorter term resistance areas can be seen on the weekly chart at around RM0.57, RM0.73 and RM0.9.
MRCB can be seen to be forming a symmetrical triangle pattern on the daily chart. Symmetrical triangles are continuation patterns, albeit weaker than an ascending triangle in predicting a bullish continuation.
A conservative TP for a breakout would be around RM0.57 which coincides with a structural resistance area (black arrows)
A longer term and more ambitious TP can be seen around RM0.72-0.73 (purple arrows)
MRCB is still technically in a long term downtrend, trading within a descending channel. Traders and investors should keep this big perspective in mind when initiating any positions.
It has recently touched and rebounded from a potential long term support (green area). While a trend reversal is possible, it would be more prudent to wait for a reversal signal before getting ahead of ourselves.
In the shorter term though, we may see prices retesting the upper border of the descending channel.
Successful breakout of the symmetrical triangle on the daily chart may see prices heading towards RM0.57 and then RM0.72.
Breakdown of the triangle may indicate further downside and should trigger a cut loss for shorter term traders.
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