VIVOCOM: 9-13 NOV 2020
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1. What happens next after the first peak was formed and wave (3) is now completed?
a. The correction wave (4) is over at RM1.00, with low at RM0.89, resumption of uptrend wave (5).
Target price: retest RM1.19 -> RM1.51 -> RM1.79
b. The correction wave (4) continues for a few more days before resuming uptrend wave (5), but the stock price never go lower than RM0.89.
Target price: drop below RM1.00 then rebound -> RM1.19 -> RM1.38 -> RM1.68
c. Target correction wave (4) continues for a few more days before resuming uptrend wave (5), with stock price going lower than RM0.89 before rebounding.
Target price: drop below RM0.89 then rebound -> RM1.00 -> RM1.29 -> RM1.59
2. Strong interests from traders:
a. 705 million shares traded in the span of 6 days, averaging 118 million shares per day.
b. RM510 million traded in the past 6 days, averaging RM85.04 million per day.
c. Third most traded in terms of value on 4th and 6th November respectively, trailing behind only Top Glove and Supermax.
d. Fifth most traded in terms of value on 5th November.
e. Now a mid-cap (RM566 million market cap) stock, no longer a small-cap stock, this will attract more interests from traders
f. 7-day straight of gap-up
P/S: Interesting point to note from last week’s announcement - Dato Seri Chia 3 years Shares Moratorium is unheard of.
Meaning he can’t sell or unload his shares for the next 3 years even if the price shoots up to all time highs.
Normally sell on news, whereby most counters get slammed down. But it did not happen with Vivocom. In fact it had a very strong rebound in the afternoon.
Does this mean the countered is cornered? Does this mean there’s very thin supply of shares available in the open market?
The way the shares held up despite being pushed down by very aggressive profit taking on Friday augurs well for the stock to stage another surge higher.
Only Time Will Tell.