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Vivocom opened gapped up at 1.79 to reach as high as RM1.82 before coming back down to RM1.74. This showed that Vivocom is still in consolidation phase.
Taking into consideration that today is T+2 for short-term players, this is indeed healthy and quite normal in a consolidation mode. As seen on the daily chart, the support is forming at around RM1.70/1.75 trading region.
From my technical analysis, indicators show that short term selling is drying up with medium-term uptrend still intact.
In my opinion, I do not think that Vivocom will trade below RM1.70 as traders will protect this level faithfully.
So what does this mean for Vivocom in the coming days? It means that we could see Vivocom regrouping in RM1.70/1.85 price range before launching to soar higher. Bear in mind Vivocom’s average trading range or ATR is 15/20 pips.
At the moment, the general market sentiment is slightly dampened as traders are pricing in a potential rejection of Budget 2021 by the Parliament. Should the budget be rejected, the downside is limited as it is already within expectation.
However, should the budget be approved, it could serve as a potential catalyst that jolts the market back to life. Positive general market sentiment will allow Vivocom to test the previous high: RM2.05
