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Tanco Holdings Berhad (2429) - Potential Trend Continuation: Three White Soldier Formed
Technical Highlights
The stock last closed at RM1.160, creating a three white soldier formation, suggesting continuation in its uptrend. In November, the stock had made a strong run from RM0.850 to its 52-week high at RM1.200, before consolidating between its first support and resistance levels at RM1.200 and RM1.135. Looking at the broader view, the stock had been in a consistent uptrend, with its recent price movements further strengthening the bullish outlook of the stock. Momentum indicators were mixed, as the RSI moves towards its overbought zone, while the MACD line remains to move below the signal line. Furthermore, the stock had been trading well above its 50- and 200-day EMAs, as it hovers around its 20- day EMA as its dynamic support level. Combination of these indicators suggests that the trend continuation is likely to continue its bullish run in the long-term. On the upside, the immediate target is RM1.200, with further strength potentially towards RM1.265 should momentum build. Conversely, a breach below its support levels would invalidate the bullish outlook and expose the stock to further downside.