a day ago
- Business
- New Straits Times
SNS Network poised for further gains after technical breakout — Rakuten Trade
KUALA LUMPUR: SNS Network Technology Bhd (SNS) may see further upside after breaking out of a bullish technical pattern, according to Rakuten Trade.
The move is supported by rising trading volume and a recent bullish crossover in its exponential moving averages, a trend indicator that gives more weight to recent prices to help spot changes in a stock's direction more quickly.
In its technical research note today, Rakuten Trade said SNS has completed a cup and handle formation, a chart pattern typically associated with continued upward momentum, and is showing signs of strengthening trend.
The brokerage expects SNS to test its immediate resistance at 57 sen, with a higher target of 61 sen. Support levels are identified at 51.5 sen and 48 sen, with the latter also serving as the stop-loss level.
SNS last traded at 54.5 sen. The counter has rebounded significantly from its 52-week low of 34 sen but remains below its 52-week high of 96 sen.
Rakuten Trade classified the trend as bullish, while noting that the Relative Strength Index remains at a neutral level, suggesting further upside potential without entering overbought territory.
The brokerage added that all trading decisions involve risk and advised investors to conduct their own assessments and seek professional advice where necessary.
