Technical Pick: Oldtown
Oldtown (5201) has managed to break its major resistance of RM1.70 today with high volume indicating a bullish momentum. RSI spiked up to above 70% which is at overbought region. MACD and stochastic are both showing bullish trend.
As it is a sudden spike in buying interest today, it could be a big buying exercise by institutional buyers to support the price move. It is likely to see the stock undergoing a few days of profit taking before inching higher to its next target of RM1.85. As long as it is not falling below RM1.68, the momentum is likely to be bullish till it hits RM1.85.
So, entry price is RM1.75, Target is RM1.85, and Stop loss is RM1.68. So, risk is RM0.07, reward is RM0.10.
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