FIAMMA trade ideas
FIAMMA VCP SETUPObserved FIAMMA doing a VCP setup with below contraction:
C1: ~ -26%
C2: ~ -5%
C3: ~ -4% (tight area)
C3 contraction recently is tight area - considered as low risk entry zone.
5, 9, 12 Aug volume looks decent. Let's see if it will continue rally before QR or not. Need to take note on QR this month. Strategy will be FIFO before QR.
Disclaimer:
Not a buy call recommendation. Just my personal analysis based on chart pattern and trend. Trade at your own risk.
POTENTIAL BUY FIAMMA HOLDINGSEventhough this stock is Overvalue. But considering with current economy situation in Malaysia, they still can give 1.75 cent dividend. I'm in. Fiamma's management has done a good job so far and they look capable of steering the company through these volatile times. This year, where JV property project by this company to develop residential properties in Batu Pahat, Johor that have a potential gross development value (GDV) of RM26 million. It will effect the stock price.
Technical Analysis:
We can see potential buy back stock at this point. Strong Support line (Yellow Line) at price 0.495. If they break the support zone (Blue area) means that they'll continue in bearish mood. But if do the rejection at this point, possible to bounce back to strong resistance price 0.62 (78.6% Retracement).
