Technical Pick: Fitters
Fitters has just broken immediate resistance of RM0.68 today. This price level coincides with 50 days moving average which will be the determining level for medium term trend.
MACD line is approaching zero line which means bullish momentum is soon forming but yet to be confirmed. RSI is above 70% indicating mild overbought, which is also seen in stochastic indicators. Overbought might not be a worrying thing yet as it is normal to exhibit this pattern after a rebound from downtrend.
As market is still choppy, I think we need to be very prudent with the target price and stop loss. The stop loss is set at RM0.60 which is the immediate support and first target price is RM0.76. With entry price of RM0.68, risk/reward ratio is 1:1 (both upside and downside are 8 sen).
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