MELEWAR : The rally continues (Medium term - Wave analysis)
A lot of steel names were seen rallying strongly today and managed to hold their gains up to weekly close. One particular steel stock that caught our eyes is
MELEWAR
. After making explosive gains at the end of Dec 2020, the stock has been consolidating for 16 weeks in a contracting triangle corrective pattern of wave (iv) as labelled on the chart. Today we saw a strong breakout from the descending trendline of the triangle with huge volume signaling the start of wave (v) of a larger degree wave iii. Based on our wave analysis, we are bullish on
MELEWAR
and in the verdict that the stock could potentially move higher towards RM1.15. The next resistance is where wave (iii) has terminated which is RM0.620 and nearest support at RM0.540.
MELEWAR
. After making explosive gains at the end of Dec 2020, the stock has been consolidating for 16 weeks in a contracting triangle corrective pattern of wave (iv) as labelled on the chart. Today we saw a strong breakout from the descending trendline of the triangle with huge volume signaling the start of wave (v) of a larger degree wave iii. Based on our wave analysis, we are bullish on
MELEWAR
and in the verdict that the stock could potentially move higher towards RM1.15. The next resistance is where wave (iii) has terminated which is RM0.620 and nearest support at RM0.540.