Apr 11, 2013

Maxis: Double-bottom Chart Pattern

MAXIS BERHAD Stock Code   6012

below: Maxis Daily Chart (click to enlarge)


Among the index movers for the day was MAXIS which  advanced 16 sen to RM6.74. The share price has now confirmed a "Double Bottom"  reversal pattern on the daily chart, and this follows a breakout of a half year period of lacklustre share price performance. The 20-day SMA is also firmly above the50- and 100-day SMA, while the key indicators are also supportive of a move higher.

Hence, we believe that the share price would gradually make its way towards the RM7.15 "Double Bottom" measurement target price. Traders who are looking to buy into the stock should target RM7.12 (3 bids below the TP), while a stop-loss should also be placed just below the RM6.67 trigger-line.

by Kenanga Research