After the selling climate in 2018, Genting Malaysia dropped 46% from the price of RM4.94. The stock found support at RM2.65 in Dec 18, it retested the support on 11 Dec. The lack of follow-through with diminish volume showed a possible automatic rally. The rally occurred on 19 Dec and continued for 2 months. The stock filled the gap initiated by the climatic sell in Nov 18 but it was incapable to penetrate the RM3.42 resistance.
The stock retested the RM3.00 support and it showed re-accumulation. After the retest, the low volume rally indicated little effort with results. In July 19, the stock rallied again and the strong buying penetrated the RM3.42 resistance. On 26 July, the gap up with high volume showed supply below RM4.00. The selling continued for 4 days and gapped down on 2nd August. The price might reduce further with the lack of demands.
I reckon it’s not a good time to buy this stock and monitoring should be carried out for the next price action. Be patient, you will discover the right time to trade. (Click here for the full picture)