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Figure 1 Shows A Daily Chart For Pelikan International Corporation Berhad
Figure 1 Shows A Daily Chart For Pelikan International Corporation Berhad
Besides that, by using Moving Average Envelope, traders are suggested to buy the stock on 7th Mac 2022
as it is an oversold. Oversold is a signal in belief that the price of stock would be rebound after price
drops to the lower band of the envelope, in other word, the price of stock will be bullish. In addition, an
overbought had been identified on 18th January 2023 where the price of stock rises the upper band of
the envelope. In the case of overbought, trader is suggested to hold first or sell their stock before the
price rebound and turn to bearish.
Next, Bollinger Band has been set up with a period of 20 days and two standard deviation. In Bollinger
Band, the upper and lower band represent two standard deviations above and below the MA. On 20th
June 2022, the price of stock drop from above to lower Bollinger Band (Oversold). It is a signal for trader
to buy stock in belief the price will bullish. However, after 18th January 2023 it is overbought and volume
start to decrease. From that, it is a signal that the price of stock would rebound and turn to bearish. In
theoretically, it is bearish signal when the decreasing in volume and increasing price of stock.