Krono And Malton Attempts To Start A New Uptrend

After a big sell off in these stocks, both Krono and Malton is attempting to start a new daily uptrend. There are signs of buying interest as volume surges.

The process of bottoming may take some time and when a stock shows signs that it wants to start a new uptrend, traders should put them on the watchlist.


Let us start off with Kronologi.

As you can see from the chart above, Krono was in a nasty downtrend for quite a long time. The stock was moving downwards and it was trading below the 20 MA as well as the 50 MA.

There was a sharp rally back up around April but it has since meandered sideways for a few months.

What is evident is the stock is consolidating. We can call this process of moving sideways after a downtrend "basing". The stock is also making higher lows and this signals potential strength in the stock.

If it was weak, it would have gone lower. But it did not.

The stock is now trading back above its 50 MA. The 20 MA is also attempting to go back above the 50 MA which can be a sign of the start of a new uptrend.

The area below the consolidation will be support and if Krono manages to breakout above the consolidation, a possible nice uptrend may follow.

Also notice the heavy volume which hints to investors buying interest in anticipation of a possible new daily uptrend.

The weekly chart helps to tell the story of a stock that is really serious in finding a bottom and starting a new uptrend. The value of using Japanese Candlesticks can be seen when a weekly topping tail marks the top for Krono back in 2017. Then a bottoming tail helps to mark the bottom for the stock.

There are 3 encouraging signs from a technical point of view:

  1. Stock has broken above a weekly downtrend line
  2. Stock has broken back above the weekly 20 MA
  3. Stock is attempting to break above a weekly box (on heavy volume)

So do put Krono on your watchlist and see if it can go higher.


Malton is also trying to start a new uptrend in the daily chart.

A look at the chart tells us that Malton is weaker than Krono. Although there is heavy volume that shows buying interest, the amount of resistance above might make it hard for Malton to move smoothly upwards.

Trend changes can happen when the stock:

  1. Stock breaks above the 50 MA
  2. Stock breaks above a downtrend line
  3. The 20 MA goes back above the 50 MA

Malton might be trying to do all the above though its still too early to say. Preferably we should see Malton trading back above its 200 MA.

The weekly chart above also shows us a clearer picture of the amount of resistance areas that is waiting for Malton. So do keep that in mind.

  • If you like this article, consider starting the Stock Market Course. It is free and jam packed with great information for newbies.
  • Want to have updates on the financial markets? Join my Telegram Channel. Channel.
  • Help support this page and press the Facebook Like button below. Thanks!

Recent Articles

  1. Dow Jumps Higher After Trade War Pause, Will Markets Go Even Higher?

    Dec 03, 18 08:16 AM

    With an agreement to pause the trade war, Dow is about to jump 450 points higher, but will this rally sustain and go even higher? Lets take a look at the charts.

    Read More

  2. Bull Run To Year End In US Market? It All Depends On This...

    Nov 29, 18 07:51 AM

    Yesterday we saw a huge big rally 600 ++ points. The question now is this rally sustainable and will we have a beautiful Christmas in the stock market this year. Here are a few things to look out for…

    Read More

  3. Technical Analysis Of KLCI 29 November 2018

    Nov 29, 18 07:35 AM

    This sideways movement in the KLCI is really giving investors and traders a headache. What we are experiencing now is a volatility contraction which is often followed by volatility expansion.

    Read More

  4. Nasdaq Tries To Bottom But Still Faces Selling Pressure Nov 26 2018

    Nov 26, 18 08:52 AM

    As the techs reach an area of long term support, its going to be a choppy ride as the market decides whether support will hold or the downtrend continues...

    Read More

  5. Stock Market Analysis October 30 2018

    Oct 30, 18 06:35 AM

    As we close out the month of October 2018, what is in store for us? Let us take a look at the charts and see what they might be telling us.

    Read More

New! Comments

Have your say about what you just read! Leave me a comment in the box below.