MI Technovation Trading IdeaTechnical Setup:
The stock previously rebounded from both the uptrend line and the Fibonacci 0.618 retracement level, indicating strong support.
However, if the uptrend line breaks, it could signal a weakening of the bullish trend.
Entry Strategy:
Buy MI Technovation shares in the entry zone between RM 1.74 and RM 1.90. This range offers a favorable risk-reward ratio based on historical support levels and Fibonacci analysis.
Profit Taking:
If the price rises to RM 2.75, take profit, as this is a potential resistance level. The upside from RM 1.90 to RM 2.75 represents a 44.7% gain.
Risk Management:
If the price drops below RM 1.74 or if the stock breaks the uptrend line, exit the trade to manage risk effectively. Breaking the uptrend line could signal a reversal in trend, adding to the sell rationale.
Risk-to-Reward Ratio:
The upside from RM 1.90 to RM 2.75 is about 44.7%.
The downside risk from RM 1.90 to RM 1.74 is about 8.4%.
With the potential of an uptrend line break as an additional risk factor, this strategy offers a solid risk-to-reward ratio of 1:5.3, making it a favorable setup.
