Simple13 Trading IdeaCurrent Price: RM 2.40 (+6.19% today)
Today’s quarterly earnings report showed revenue growth but a QoQ profit drop. Despite the profit decline, the stock opened with a gap up, indicating that the results were above market expectations.
Key Observations
Technical Breakout:
Today, the price broke above the 20 EMA on the daily chart.
If the upward momentum continues, the 10 EMA could cross above the 20 EMA on both the daily and weekly charts, signaling a strong bullish trend.
Tin Price Correlation:
This company’s profit is closely tied to tin prices, which are currently at a low support level.
If tin prices rebound from this level, the company’s next-quarter earnings are likely to improve.
Entry Area: RM 2.40 to RM 2.20 (near trendline support).
Take Profit Area: RM 2.40 to RM 3.30.
If the price drops below RM 2.10, consider cutting losses as it may dip below the 20 EMA, signaling a deeper pullback.
Summary
This stock presents an interesting opportunity, driven by positive earnings surprise, technical breakout, and potential rebound in tin prices. If you believe in a stronger profit outlook for the next quarter, now could be an excellent buying point near trendline support.
Disclaimer: This post is for informational purposes only and does not constitute financial advice. Please conduct your own research and assess your risk tolerance before investing.
