Mid-Day Review & Analysis 18 Aug
VIVOCOM finally blasted-off from its upward breakout-point on strong buying-interests this morning as traders jumped into the bandwagon in a big way and lifted prices to its eight- week high of 31.0 sens.
Prices ranged from 29.5 to 31.0 and settled higher at 30.0, up half a sen from before.
Morning's volume rose sharply to 68.40 M shares with buyer's mobbing up sellers on a hefty 70.1% of total trades.
Positive expectations from this afternoon's EGM on the one-for-four bonus-issue was cited as the catalyst for the bullish performances this morning.
Buyers were jumping in in anticipation of further price gains and are applying the basic trading principle of 'buy-high-and-sell higher'.
Market-talks and trade guesstimates are calling for the soon to be release 2Q profits to far exceed the 1Q profit results of RM19.87 M.
I personally do not know the figure and would consider a profit figure of RM20M to RM22M or higher to have an extremely bullish impact on near-term prices.
What then is the immediate term price outlook?
The successful upward price-break from the ascend-triangle today was accompanied by a higher than normal volume of 68.40 M shares.
This is an extremely constructive development and confirmed that VIVOCOM is now in the fifth and final wave of its five-wave bullish cycle.
The next and immediate price-target now stands at 34.5-35.5 levels.
Violation of these levels would generate fresh upward momentum and take prices upwards to re-visit its historical-highs at 37.0 sens.
Traders indeed waited patiently for sometime for the breakout from the ascending-triangle.
You have been informed too and it is happening now.
The nature of stock analysis is such that when you are right, nobody remembers.
And when you are wrong, nobody forgets! Haha!
The Quantitative Algorithm signal has turned bullish again at close this morning and is calling for an extended-move on the upside.
QA turned into bullish mode n buyers definitely the aggressors today!
Volume Distribution on 82.12 M shares. Buyers continue to hit sellers.