BORNOIL (7036) – Poised for Rebound?
Technically Bornoil is in the uptrend since end Dec 2014 after it rebounded from the recent low of RM0.75 in mid Dec 2014. Recent candle stick chart shows that it has gone through a period of correction from the high of RM0.98 all the way to test the support of RM0.88. The correction has clearly soften down with the last two days’ chart being two consecutive Doji indicating indecisive of bull and bear.
Volume wise, it had shown healthy volume trend with good buying volume at uptrend while significantly lower volume during the corrections. This means buyers are still in support of this stock and it is not subject to heavy sell down. MACD signal lines are in positive territory reaffirming uptrend is sill in tact.
RSI indicator shows the stock is in neutral zone with no overbought or oversold while stochastic is showing it is just entering oversold. For an entry, my personal opinion is for the stock to go above RM0.925 with high volume. The stop loss needs to be set at recent support of RM0;88 while first target profit is at RM0.98.
Will rebound happen? Lets wait and see.
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