Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
Today’s trading marks the confirmation that the previously short-lived 2 day correction is over.
Vivocom closed today at RM1.39, up 16.8% from yesterday’s closing with 112.38 million shares changed hands.
Such high activity for past 10 days is rare in KLSE as most of the small-mid cap companies in Malaysia sees the interests in their shares peter off quickly.
There were some tentative traders who wanted to wait for retracement before buying in. They missed out. Or some who cashed out prematurely.
Normally in a fierce upward momentum stock, the smart thing to do would be to hold on to the shares as tightly as possible simply because there isn’t much time or room for the share price to correct. So why sell prematurely especially when Vivocom’s liquidity is so tremendous there’s no likelihood of being locked in.
An analogy for this would be the bull run in Pamplona. Once the gate is lifted and bulls charge through the street, all the runners run in one direction, which is away from the bull. Anybody that gets in the way of the stampede would get trampled over.
This is what is happening in Vivocom. Bears lock in profit because they feel uncomfortable with the fierce uptrend, not knowing that they are at the losing end. Once sold, they realised they made a horrible mistake by selling too early, and so they chased high due to FOMO.
Today's candlestick on daily time period shows second bar of another ‘three white soldiers’. This tells me that there is a chance for the share price to move up sharply again tomorrow to complete ‘three white soldiers’ again. It appeared on 2nd-5th of November earlier.
Should that happen, the immediate target price is RM1.79, a 28.8% upside from current price.
The medium-term uptrend and target price of RM3.80 by December 2020 is still intact.
To sum up, Vivocom’s uptrend started 8 days ago and looks like continuing strongly with even more conviction, as the past two days surge with high volumes confirmed.
Today’s sharp upturn looks like the beginning of another powerful surge soaring even higher to RM1.79 with determination and persistence.
