In Technical Price Structure, Hengyuan is long term uptrend, mid term sideways and short term correction. This ensures maximum confusion smoke bomb is thrown into the market to confuse traders and investors.
Hengyuan has already done a regression to the mean; not only that, it is also doing a backtest of the long term support. Strong stocks normally have their supports tested successfully. There was also a humongous volume of support for Hengyuan in January of 2018. This is a volume absorption of all previous red volume sells. Even if Hengyuan breaks the support and goes below blue channel support, it will make another new channel to progress with an entirely new channel of uptrend. This is because it has previously broken the light blue resistance of the blue channel with fundamentals supporting it.
Hengyuan is within the blue channel as illustrated. Based on Channel progression, Hengyuan's next target is $38.00. If it becomes a large cap stock which is likely the eventual case, it will be included into the KLCI as an index constituent stock in the future.
(Hengyuan To Continue To Set Historical High Never Seen Before; it is supported by economic cycle fundamentals)
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