Simple13 Trading Idea

Technical Setup:
The stock has previously rebounded from the uptrend line, showing strong support at these levels. The price is likely to pull back because of the resistance at the 20 EMA on the weekly candle chart, which could act as a temporary barrier before any further upside movement.

Market Context:
The upward momentum in this stock is primarily driven by rising crude oil prices and a strong energy stock index, making it responsive to broader market trends in the energy sector.

Entry Strategy:
Accumulate shares within the RM 2.25 - RM 2.45 range, as the stock shows momentum aligned with the broader energy sector rally. This range offers an attractive entry for long positions.

Profit Taking:
While RM 3.05 can be considered a key resistance level, profit-taking should be based on individual preferences. Traders can adjust their profit-taking targets according to their personal risk tolerance and trading goals. Risk-to-reward ratio of approximately 1:3, making it a favorable trade

Risk Management:
If the price drops below RM 2.25, consider cutting losses, as the pullback might extend below expectations and potentially breach the 20 EMA and uptrend line, signaling a further downturn.

Disclaimer:
This analysis is for informational purposes only and should not be considered financial advice. Always conduct your own research or consult a professional before making any trading decisions, as market conditions can change rapidly.