Naked Chart Trading: SNS 6 May 2024

According to Theedge news, the company expects a meaningful contribution from its newly ventured data centre fit-out business segment from artificial intelligence (AI) development in Malaysia. The management believes its financial performance will be lifted by the sale of AI super servers, with more data centres being set up in the country, especially in Johor.

SNS is awaiting the Securities Commission Malaysia's approval for its proposed transfer of listing status to the Main Market from the ACE Market of Bursa Malaysia, after it met the requirement of having an aggregate net profit of at least RM20 million for the past three to five full financial years, with a net profit of at least RM6 million for the most recent financial year.

Share prices saw its first jump during Apr 2024, with surging trading volume as well. Then it followed by a healthy overbought correction to 50% Fibo retracement I drawed from Dec 2023 low to Apr 2024 high. The share prices hit another record high today and testing 138.2% Fibo extension level now.

Candlesticks and waves showed a healthy bull trend, expect the share prices will not go below RM0.300 for now. Next resistance according to Fibo extension level will be at 150% RM0.520, 161.8% RM0.550 and 200% RM0.620, while support at Apr 2024 low around RM0.330 level.

As a conclusion, SNS fundamental and technical analysis look good with no trace of potential technical correction now. If i aim for lower entry price then i will be waiting technical correction near RM0.400 level, otherwise if I enter at this price level, I will be looking at averaging down.

Disclaimer
This content is for reference only and does not constitute any investment advice, and past performance is not indicative of future performance. Returns will vary, and all investments carry risks, including loss of principal. Please make your own investment decisions.