Ming Jong Tey
Independent Analyst
Dagang NeXchange Bhd (DNeX) opened at 0.91, up 6.55% following the news that Foxconn (or Hon Hai), the main assembler of Apple's iPhones, has acquired 120 million shares (or a 5.03%) in DNeX.
Tell-tale signs for bullish characteristics have been spotted while DNeX was trading below the resistance level at 0.835, as shown in the video below:
Inside the Telegram Group, Ming Jong Tey has discussed the context for DNEX after the breakout happened on 8 Jun and how to derive the directional bias based on the interpretation of the supply and demand using the volume spread analysis together with the price action. Refer to the screenshort below:
DNeX Price Action Update
As shown in the daily chart above, DNeX had jumped at the market open followed by an attempt to push up to test the resistance zone at 0.95-1. Profit-taking activity was observed with spike of volume. It is crucial to monitor the today's close to judge the price movement characters for DNeX next week.
As supply has emerged, it is expected to see a reaction or at least a consolidation for DNeX to absorb the supply before the next rally under a bullish scenario. A drop below the resistance-turned-support at 0.835 might negate the bullish case.
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