MAGNI-Tech on the rise, is a Major Breakout Brewing?

Long Term Chart

Daily Chart

News on 3-Sep-2024 720pm

The Edge reported that “Magni-Tech 1Q net profit rises 36%, declares five sen dividend”. Stock price reacted positively this morning with MAGNI emerging as top gainer despite negative market sentiment from overnight US stock decline.

Full details of the news on MAGNI here

Overall Technical Outlook: The bullish momentum is strong but caution is needed as RSI is approaching overbought level.

Price Action: The stock has recently made a significant upward move, breaking above the 50-day moving average (MA) at 2.36 and is now at 2.52, which is a strong bullish signal. The price is above all major moving averages, indicating a bullish trend.

Moving Averages: The 20-day MA is currently at 2.31, acting as support. The 150-day and 200-day moving averages are at 2.20 and 2.13, respectively, and are also sloping upwards, suggesting a sustained uptrend.

Bollinger Bands: The price has moved towards the upper Bollinger Band at 2.41, showing a strong upward momentum. The squeeze in the Bollinger Bands in the recent past could indicate a potential breakout, which appears to be happening now.

Volume: There’s a noticeable increase in trading volume, which supports the recent price action and adds credibility to the upward move.

MACD: The MACD line is crossing above the signal line from below, which is a bullish signal. This crossover often precedes upward price movement.

RSI: The RSI is approaching 69, which is close to the overbought territory. While this is something to monitor, it’s not necessarily a deterrent for further upward movement, especially if the momentum is strong.