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Limit Up on HEXZA (3298)

Congratulations for those who traded HEXZA and made profits! HEXZA (3298) has gone limit up, added 29.5 cents to close at RM1.21 on Monday. This stock has been mentioned previously in our posts, and alerted on our M+ Wiz trading system as well.

To look back or find out why HEXZA is selected, you can refer to our previous post as below:

HEXZA was alerted at 9.02AM

HEXZA was again alerted on M+ Wiz today, triggered the rule [TREND] Buyers Intact, 2 minutes after market opened. We believe the surge in the company share price is likely due to the increased trading interests on companies in chemical industry. This comes amid the high demand of sanitisation products for disinfecting the properties and premises before re-opening for business operation.

On Friday, Prime Minister Tan Sri Muhyiddin Yassin spoke on the easing of restrictions in which a number of activities were allowed to resume today under a conditional Movement Control Order (MCO). It is a must to follow standard operating procedure (SOP) issued by the ministry.

HEXZA CORP BHD’s principal business is in the manufacture and sales of formaldehyde based adhesives and resins for timber related industries, ethyl alcohol, natural vinegar, cooler, liquefied carbon dioxide and kaoliang wine.

Resistance Breakout upon opening in HEXZA

Alert on HEXZA is identified to be a high probability one as:

  • Point 1: Resistance Breakout on 30-minute chart after the price retraced from the high on Thursday
  • Point 2: Little volume transacted during price retracement which indicates absence of profit taking
  • Point 3: MACD crossed above its 9-days Signal line. An indication of potential buying momentum.
HEXZA is alerted again during afternoon session

Wiz was able to identify another good probability setup for HEXZA during afternoon session. HEXZA was alerted twice as the price broke above the intraday resistance and morning high after consolidating near top. Volume transacted during the consolidation retracement was low which indicates a healthy pull back and a potential upward continuation when the price breakout happens with strong volume.

What’s next?

HEXZA’s share price is hitting its all time high at RM1.21. However, the indicator Relative Strength Index (RSI) is showing Overbought signal which indicates a potential limited upside. Share price might continue to rally higher, but it is advisable to take profit swiftly to avoid being caught in the potential near term retracement.

HEXZA share price continued to go higher and hit upper limit of RM1.21 during afternoon session with strong volume. On the 30-minute chart, we do not see any retracement take place to digest the surge. If the share price retraces back to 20-days Moving Average with a diminishing volume, the buying pressure is likely to stay intact and continue the upward trending.

However if the share price continues to surge higher and moves further away from the Moving Average lines, short term traders can consider to take profit on a technical overbought. Traders can use RM1.30, RM1.40 and RM1.50 as the immediate resistance for short term trading.

 

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