Simple13 Trading IdeaCurrent Price: RM 6.44
I foresee a potential price correction for this stock based on two strong technical indicators, despite its low PE ratio (below 10).
Key Observations
Inverse Pin Bar with High Volume:
The inverse pin bar candle on the daily chart, coupled with high volume, indicates significant selling pressure, a bearish signal that the price might head lower.
RSI Divergence:
The RSI divergence on the daily chart adds another layer of bearish confirmation, showing weakening momentum even as the price reached recent highs.
Trading Plan
Wait for Pullback: If the price declines, look for a pullback near the trendline or Fibonacci support levels to consider an entry. This approach allows a more calculated buy at stronger support levels, increasing the risk-to-reward ratio for any future reversal.
Summary
While the fundamentals (low PE) suggest value, the technical indicators signal a likely pullback in the near term. Patience will be key—waiting for a pullback near key supports can provide a better opportunity.
Disclaimer: This is not financial advice and is for informational purposes only. Please do your own research and assess risks before making any trades. MYX:MBMR
