The most exciting technical development that catches our eye is the nicely placed converging 15-day, 65-day and 200-day exponential moving averages (EMA). This is a tell-tale sign of a sustainable rising trend ahead and hints of a cyclical upturn for Meiban. In addition, the stock is currently trading just slightly above the 3 converging EMAs, suggesting that price has yet to ‘run away’.
We like the ‘buy signals’ from the daily MACD as well - the indicator has turned above zero and cut its 9-day EMA trigger line to the upside.
Support is at $0.245. We see the stock moving in the uptrend channel shown with a price objective of $0.34. Risk reward is very attractive. The upside potential of 8.5cts far outweighs the downside risk of only 1ct. Recommend trading buy.
Broadway - Technical Trading Buy, TP: $0.47
The 15-day, 65-day and 200-day EMAs have converged and the stock managed to stay above its 200-day EMA for the past 2 sessions. As the daily MACD signaled a ‘buy’ because it has turned above its 9-day EMA trigger line and remained above the zero level, the stock price should continue to maintain above its 200-day EMA. A sustainable rising trend is suggested on the back of a cyclical upturn.
We observed that resistance has been low, which is a positive sign – The stock’s most recent rise from $0.30 to $0.36 during the past 10 trading days occurred on an average daily traded volume of 0.5mil shares. This is much lower than the average daily traded volume of 1.1mil shares during the period from mid-May to mid-June when the stock had a similar price range. This suggested that little effort was needed for the stock to head towards its June closing high of $0.375.
Support is at $0.345. We see the stock moving in the uptrend channel shown with a price objective of $0.47. Risk reward is very attractive. The upside potential of 11cts far outweighs the downside risk of only 1.5ct. Recommend trading buy.
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