MISC flashed a shooting star!

MISC rose to an intra-day high of RM9.10 at about 11.45am & then entered into a correction. The intra-day correction was very severe & the share price was pushed back to the level where the stock started out in the morning (see the 30-min chart below). This correction will lead to the formation of a candlestick called the shooting star. This candlestick when it appeared after a long rally, could signify a possible bearish reversal, subject to confirmation on the following day. If confirmed, the stock is likely to drift to test horizontal support at RM8.70-75 & the breakout level of RM8.50.


Chart: MISC's 30-min chart as at April 20, 2010_4.24pm (Source: Quickcharts)

The earlier call remained valid provided the stock does not violate the breakout level of RM8.50. The unfortunate timing of the post, clashing into the correction, is much regretted.