According to RHB Research’s technical analysis report (September 26), UMedic Group is eyeing the historical high as it rebounded from the recent pullback while trying to reclaim the area above the resistance level of MYR0.835 last Friday – on top of trading above the 21-day average line. If a breakout above that level happens, the bullish bias may propel it further towards the all-time high of MYR0.905 (which it printed on 13 Sep), before possibly hitting a new peak at the MYR1.00 mark. However, the counter may reverse direction if it falls below the MYR0.71 support – trading below the average line while forming a “lower low” bearish structure.
This counter is poised to resume the uptrend as it attempted to reclaim the territory above the recent high of MYR0.74 last Friday. If it manages to break above that point – forming a “higher high” bullish structure – a bullish bias above that level may drive the counter further north towards MYR0.815 or 5 May 2021’s high, followed by MYR0.88, which was the high of 19 Aug 2016. If it falls below the MYR0.615 support, the stock may undergo a reversal in momentum as it forms a “lower low” bearish pattern, below the 21-day SMA line.