Stock To Watch: Alam [5115]

Alam, one of the most popular small-cap oil and gas company, had recently formed a beautiful pattern which traders like a lot. After consolidating for around 2 months, price broke above the huge triangle on the 16th of July with substantial volume. The momentum continued for another day, where we see the share price of Alam broke the 1-year high at ease and closed at RM1.58 before it retraced to lower price levels on subsequent days. By joining the highs and lows for the past few days, we could see an obvious triangle. Price never close below the RM1.52 support line during the formation of the triangle and the lows were moving higher each day, indicating that the bull were in-charge. Once the share price moves above the upper line of the triangle, it’s a buy. Traders could also see Alam as forming a pennant (a combination of the 2 up days and the triangle), of which the buy decision would be the same as the triangle pattern. The relatively low volume during the formation of the triangle compared to the 2 up days means that it is very likely that the share will break above the upper line.

alam

Do trade cautiously as the market is getting weaker.

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