Potential double bottom and might be close the gap if break resistance level MYR 0.115. We can chip in long or wait until the price break the resistance and make pullback to the breakout pattern.
HI there. Sorry i am not familiar with the technical term. What does it mean by double bottom and break resistance level. If break resistance, means the price will move uptrend?
traderfizfx
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@Escanor999, Hi, Double Bottom is one of the bullish reversal pattern signal. The pattern is like 'W' and if the price break the resistance level 0.115 (marked in the chart), the price expect to go higher. The price consensus as per arrow in the chart and expect to close the gap price (0.115 - 0.160). Hope you get the idea. Thank you :)
yorouichi_peisy
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@traderfizfx, Hi Bro. Thank you so much for your explanation. I understand better now. Great to learn from you. Can i check with you whether it is correct to combine both technical analysis and fundamentals together when deciding whether the share price will go up or not. I am worried that the bad oil economy will not do any good for companies like Sapura because they are doing mostly offshore oil projects. Do correct me if i am wrong
traderfizfx
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@Escanor999, Im glad that you are taking so much effort to understand about trading. Well actually it is depends on your trading style but for me Technical Analysis is one step ahead from Fundamental Analysis. It's all about chart and price action. But if you have time, maybe you can just go through their financial report once a year just to know the company performance generally. I agree with you now oil industry is not doing good. As an investor, we need to see for a long term perspective because oil is one of the most essential need in our life. I think now is the right time for us to look closely at the oil price because we can buy at discounted price and hold at least 5 to 10 years ahead. But if you are not a risk taker, i suggest you invest in safe haven. Back to Sapura, i think the company quite stable for a long term investment.