Simple13 Trading Idea

Current Price: RM 1.23

The stock rebounded from a double bottom around RM 1.15, confirming a bullish reversal after breaking above the neckline at RM 1.20. However, the price encountered resistance near RM 1.30 and is now in a pullback phase.

Technical Analysis
Fibonacci Retracement Support:
The price has pulled back to the 50% Fibonacci retracement level, a key support zone where buying interest typically re-emerges.

Double Bottom Confirmation:
The break above the neckline at RM 1.20 validated the double bottom pattern. As long as the price stays above this level, the uptrend remains intact.

Resistance and Target:
The next major resistance is RM 1.30, followed by the target price of RM 1.50, aligning with the pattern’s projected move.

Trading Plan
Entry Area: RM 1.20 (near Fibonacci and neckline support)
Target Price: RM 1.50 (based on price projection from the double bottom breakout)
Cut Loss Level: RM 1.14 (if the stock closes below this level, invalidating the double bottom pattern)
Risk-to-Reward Ratio: 5:1
Summary

This setup leverages the double bottom breakout and Fibonacci support for a potential upside target of RM 1.50, while maintaining a tight stop-loss at RM 1.14 for risk management.

Disclaimer: This is not financial advice. Conduct your own research before making investment decisions.

CTOS