Hartalega (5168) drops 2.72% today - time to get out fast?

lipkarlock Wednesday, January 29, 2020

Hartalega (5168) surges to a high price for the past few days due to the Wuhan Coronavirus outbreak that happened in China.

But today, the selling pressure is high, and currently, it drops up to 2.7% from the open price.

Coronavirus caused many to cancel their trips to China

Hartalega Drops Fast

Looking at the price action today, selling pressure is high because many are starting to take profit.

We suggest investor/trader to take profit as we think that this selling pressure will continue.

No harm taking profit off the table.

Hartalega Monthly Chart

We can see the price of Hartalega is surging to a strong uptrend this month, due to the coronavirus issue.

Many people are rushing to get more gloves.

With this uptick in demand for gloves from consumers all around the world, Hartalega becomes a popular counter for the past few days.

Technical Analysis - Heikin Ashi Candlestick Chart

Below is the 5min chart.

Based on the Heikin Ashi chart, we can see that the selling pressure is continuing.

The share price will continue to drop further.

RSI is also low, suggesting that many are still selling.

It is almost at the oversold zone of below 20.

MACD wise - selling momentum is still intact and has not seen a reversal yet.