Simple13 Trading Idea

Technical Setup:
The stock took 160 days to finally break out of the consolidation zone between RM 3.70 and RM 4.00, signaling a potential bullish move. The buy zone between RM 3.90 and RM 4.18 is based on recent support levels and offers a reasonable entry point for this setup.

Entry Strategy:
Accumulate shares within the RM 3.90 - RM 4.18 range, as the breakout from the consolidation area suggests potential upward momentum.

Profit Taking:
If the price rises to RM 5.55, take profit, as this represents a significant 33% upside from RM 4.18. This level is seen as a strong resistance point. Traders should base profit-taking decisions on their own risk tolerance and goals.

Risk Management:
If the price drops below RM 3.90, consider cutting losses to avoid a potential pullback. A break below this level may indicate the stock could fall further, potentially below the 20 EMA, signaling weakness.

Market Context:
The breakout from a lengthy consolidation period suggests renewed interest and momentum in the stock. However, caution is warranted as pullbacks may occur, especially around key moving averages such as the 20 EMA.

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.