This is actually a repeated signal, as it was previously triggered on 13 Dec 2023 at a similar price of RM0.385.
The support area could be set at the most recent pivot low of RM0.350, which coincides with the equilibrium support area. However, I would set the stop loss to RM0.345 to adhere to the minimum 10% risk based on the price.
The target price is RM0.465. To maintain a risk/reward ratio of 1:2, you may choose to adjust this to 1:1.5 or 1:1 based on your preference.
The time horizon is 2-3 months, as the signal is derived from the daily chart.
The momentum signal was triggered at an uptick candle near the diagonal support of a rising price channel.
An uptrend price pattern of higher highs (HH) and higher lows (HL) has been established, triggered after a pivot from channel support and coinciding with the equilibrium price area. A momentum signal at these price areas should be able to confirm the movement. Zoom out the chart to see.
The immediate resistance is at RM0.435 and the next (faraway) resistance is at RM0.525.
The support zone is at RM0.350.
**Only for discussion purposes. Not a buy / sell call**