Technical Analysis Of MMS Ventures

After forming a double bottom, MMS Ventures is trying to climb back up to form a new daily uptrend. Let us see if MMSV is able to grind higher and break the old highs.

The chart below is the daily chart of MMS Ventures.

The stock had a really nice uptrend back in 2017 and this provided a great return for investors. Traders also had ample opportunities to do swing trades. Which is why the easiest time to make money in stocks is when it is in a strong uptrend. You would do very well to focus on these kind of stocks.

MMSV had a correction which ended with a double bottom. It broke above a downtrendline and shot higher only to correct again. There is a reason for this.

Technical Analysis Of MMS Ventures

If you look at the chart carefully. you will notice a huge area of resistance which I have circled. This kind of resistance is not easy to overcome and therefore it will take some time for MMSV to overcome it.

It kinds of remind me of the consolidation resistance that is present in Hengyuan at RM 17. 

To overcome the resistance, I would prefer to see a consolidation box and a breakout above it. That way, the supply (people who lost money) will be fully absorbed.

Short term traders should look at the top of the double bottom as well as the downtrend line. If MMSV can stay above here, then short term wise it will be alright. MMSV will just trade sideways and hopefully it will form a consolidation box for us to buy a breakout play.

The other thing that is beneficial to MMSV is the rising 200 MA.

Normally this points to the long term health of a stock. As long as MMSV is able to stay above the rising 200 MA, then we can consider any movement to be a correction rather than the beginning of a crash.

Let us now look at the long term picture of MMS Ventures. For that we will whip out the weekly chart and study it.

As you can see, MMSV's share price broke out of a long term downtrend line and this set the stage for a massive bull run in the stock.

After such a nice big bull run, it is not surprising to find MMSV trading sideways. It is normal and it is healthy. But you have to make sure it stays within the trading range I have drawn. If it can stay above the lows of the box, then anything that happens in between is just a pause that refreshes before MMSV breaks higher.

Looking at the weekly chart, I prefer more sideways trading before breaking out rather than a quick fast rise up. That's because we might see a double top if that happens.

A slow consolidation and then a breakout above a weekly consolidation box would be ideal to send the stock higher in the long term.

Technical Analysis Of MMSV (January 9 2018)

MMS Ventures was a very hot stock back in 2017 until it had a nasty correction.

In this analysis of MMS Ventures, I will put the daily chart and the weekly chart side by side for comparison. The daily chart will be on the left and the weekly chart will be on the right.

The recent rise in the daily chart happened because of the oversold stochastics in the weekly charts. This provided a catalyst for the stock to be traded in the daily time frame.

In the daily time frame, the stock formed a bullish divergence double bottom. Some may see an ascending triangle forming as the stock bottomed in the daily chart.

Usually stocks that have this bottom can shoot up high quite fast but the slow grinding up in MMS Ventures is because of the stubborn resistance which you can see in the daily chart. That will take some time to be absorbed.

Anyway, I will stay bullish on this stock if it can manage to stay above 1.70 area.

Which is just slightly below the top of the daily ascending triangle. Furthermore, the weekly chart is probably forming a bullish MACD buy signal, so if MMSV can stay above 1.70 then we should be bullish bias.

  • 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. Dstockmarket.com 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.