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Today profits taking was a minor retracement to the strong bull’s surge and momentum we have witnessed since 4 days ago.
Most likely caused by RHB’s decision to limit their exposure in Vivocom in terms of contra credit. This is a good sign as it’s only applicable to Super Bull stock. Plus I do not encourage short term contra plays.
The share price as a result dropped to as low as RM1.41, before closing at RM1.47 for lunch session.
There were more sellers than buyers today as traders locked in profit, with sellers at 61.4%.
However, it is worth noting that only 6.94% of total traded volume were done between 1.41 and 1.44c, which is similar to last Friday scenario when the share price corrected last Friday, very little volume were done at the lowest price (RM0.89 to RM0.94).
That was exactly what happened today.
This showed that Vivocom’s natural market support price is pegged at or above RM1.45. No wonder the stock rebounded strongly each time upon reaching RM1.45.
If you recall in my most likely scenario, I have forecasted the first peak to happen around 20 Nov with target price RM1.53, subsequently a retracement to RM1.41.
Today’s lowest price was RM1.41. This confirmed that the market is essentially pricing in and bringing forward my forecast by approximately 2 weeks.
In this case, we should see RM3.00 by the middle of December. So do enjoy the ride upwards guys.
Vivocom is in my view a long term and sustainable rally. So no contra or margins play please.
May the force be with you. I anticipate a strong rebound in the afternoon and closing around RM1.50, with the strong uptrend still in tact and continuing with it upsurge to RM1.80 next week.
