PDZ: Consolidation Looks Set To Continue
PDZ has gathered quite some interest among traders, particularly recently during its short-lived but significant upward move which was probably catalysed by the company's announcement regarding a JV with MYX:SANICHI to develop an e-commerce logistics hub in Desaru, Johor.
News aside, we can see that PDZ moved in an interestingly discernible 5-Wave 'Minor' cycle starting from around the 0.040 level to as high as the 0.325 point and has so far retraced to as low as the 0.125 level which is about the 78.6 / 76.4 % Fibonacci retracement. Up to this moment, we have seen that the stock has moved in a 3-3-3 pattern of the A-B-C retracement waves. As of yesterday (Friday, 07/08/2020), the stochastic RSI lines have crossed in the "Oversold" area, which is a weak "Buy" signal, whereas CCI is still staying far into the negative territory (-64.09) which is a "Sell" signal. We also witnessed yesterday that the price failed to break through the 0.155 level which is the mid-BB point and my bet is that the stock may continue with its sideway movement and consolidate into a 3-3-3-3-3 pattern of the A-B-C-D-E triangular retracement waves (as per annotation). I will probably revisit PDZ when both the Stochastic RSI and CCI have started to give a marginally strong "Buy" signal if they were going to continue with the Wave (3) of the 'Intermediate' cycle. If the next uptrend is confirmed, then we shall see a very powerful upward move with TP1=0.585 with a further upside of TP2=0.870. Until then, don't expect this counter to move so far.
News aside, we can see that PDZ moved in an interestingly discernible 5-Wave 'Minor' cycle starting from around the 0.040 level to as high as the 0.325 point and has so far retraced to as low as the 0.125 level which is about the 78.6 / 76.4 % Fibonacci retracement. Up to this moment, we have seen that the stock has moved in a 3-3-3 pattern of the A-B-C retracement waves. As of yesterday (Friday, 07/08/2020), the stochastic RSI lines have crossed in the "Oversold" area, which is a weak "Buy" signal, whereas CCI is still staying far into the negative territory (-64.09) which is a "Sell" signal. We also witnessed yesterday that the price failed to break through the 0.155 level which is the mid-BB point and my bet is that the stock may continue with its sideway movement and consolidate into a 3-3-3-3-3 pattern of the A-B-C-D-E triangular retracement waves (as per annotation). I will probably revisit PDZ when both the Stochastic RSI and CCI have started to give a marginally strong "Buy" signal if they were going to continue with the Wave (3) of the 'Intermediate' cycle. If the next uptrend is confirmed, then we shall see a very powerful upward move with TP1=0.585 with a further upside of TP2=0.870. Until then, don't expect this counter to move so far.
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