BJFOOD (5196) - Technical Analysis
1) There are a couple of good examples of chartings in BJFOOD shares price.
2) Normally, for a shares price to change/form a significant trend, it needs months or quarters.
3) After BJFOOD shares price hit historical high RM 3.30, it starts a long term downward trend. It took 215 trading days to complete multiple tops and break out the neckline RM 2.619 on Jun 9, 2015.
4) The first level of downward satisfaction as below: -
- RM2.609 - RM3.290 = -0.681
- RM2.619 - 0.681 = RM1.938
5) BJFOOD shares price declined and hit RM2.000 which is closed to our first level of downward satisfaction point, RM1.938. It bounced back but fail to overcome the previous neckline RM2.619 so we considered it was an escape wave. Overview, BJFOOD shares price still in a downward trend.
6) Once, BJFOOD shares price broke another neckline RM2.000 and we able to calculate the second level of downward satisfaction as below: -
- RM1.977 - RM2.650 = -0.673
- RM2.000 - 0.673 = RM1.327
7) There was a sharp drop and hit the lowest level of RM 1.23 on Aug 19, 2016, which was again close to our calculation, RM1.327. After that, BJFOOD entered a long period of consolidation period with 870 trading days.
8) Due to COVID-19 and economic lockdown, BJFOOD shares prices break out the bottom of the parallel line on Mar 12, 2020. Again, we able to calculate the first level of downward: -
- RM1.345 - RM1.90 = -0.555
- RM1.224 - 0.555 = RM0.669
9) As long as, BJFOOD shares price unable to bounce above the bottom of the parallel line than BJFOOD shares price is still in a bearish trend.