Blue Lines – Double bottom
After breaking down from the head and shoulders pattern, Slvest formed a double bottom reversal pattern which bottomed around RM0.515. It subsequently broke out from this reversal pattern around RM0.615 and topped out around the technical Target Price (TP) of RM0.715.
Purple line – Ascending Pennant continuation
Having fulfilled the technical TP of the double bottom reversal pattern, Slvest consolidated into an ascending pennant pattern.
It broke out from this pattern around RM0.78.
A conservative TP proposition would be around RM0.865 (purple arrows) though price movement was stopped around the psychological resistance of the shoulder peak around RM0.845.
At the current price of RM0.835 (April 7th 2020), it will need to successfully breach the RM0.845 structural and psychological resistance to be able to trade higher.
Should the RM0.845 resistance be broken, RM0.865 may be a short term TP.
Green line – Ascending Pennant continuation 2
The green arrows indicate an alternative method of projecting a TP for pennant breakouts giving Slvest a TP of around RM0.97. This level is close to RM1 which coincides with the peak of the Head and is also a likely psychological resistance.
Red line – double bottom/ascending triangle support
TP for the double bottom/ascending triangle above is around RM0.825. This may serve as the nearest support for shorter term traders. RM0.77-0.78 area may serve as a lower support.
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2020 Dividend Growth Stocks Bursa Malaysia
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