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Started from the ‘bottom’, now we’re here

DUFU (7233) was alerted on M+ Wiz today upon market opening, triggered by our trend rules: Support Rebound and Buyers Intact. Upon the triggers, the share price had been moving higher and traded to its day high of RM4.08, up by 17 cents.

DUFU

Quarterly Report announced on 05 May 2020

DUFU TECHNOLOGY CORP BHD has reported an improved quarterly result on 05 May 2020. Group revenue for the quarter ended 31 March 2020 has increased 27.6% compared with corresponding quarter, mainly due to the increase in volume loading by customers related to Hard Disk Drives (“HDD”) components.

Group’s Profit Before Taxation increased to RM18.7 million from RM5.8 million registered in the previous year corresponding financial quarter. The increase in profit before taxation was mainly due to higher revenue and unrealized foreign exchange gain due to the strengthening of USD against the Ringgit towards the 31 March 2020 quarter end.

Prospects

Management concern with a potential supply chain disruption risk which may temporarily impact the demand of own and customer’s product lines. However they remain confident that the Group has enough financial liquidity and cautiously optimistic that the Group will still be able to achieve satisfactory results in the financial year ending 2020 despite the uncertainties.

Technical Outlook

Upward trending with immediate support at RM3.69 and resistance at RM4.32

DUFU (7233) is trading on an upward trend after a breakout above RM3.40. It shows a positive technical outlook with the MACD is expanding upward above center line and upward potential till RM4.30 and RM5.00 resistance. Yet traders want to pay attention on the volume transacted. We might see short term retracement due to a price-volume divergence whereby a slowing down volume transacted despite a higher price movement.

DUFU on WIZ

Alerts on DUFU for 05 May 2020

DUFU (7233) was alerted on M+ Wiz today upon market opening, triggered by our trend rules: Support Rebound and Buyers Intact. Upon the triggers, the share price had been moving higher and traded to its day high of RM4.08, up by 17 cents.

It was a high probability setup where one shouldn’t be missed. Criteria which supported its buy setup include:
1. Pennant formation breakout on 30-minute chart (marked 1)
– Bullish pennant breakout suggests a potential rally and upward continuation

2. MACD line crosses above its 9-days signal line on 30-minute chart (marked 2)
– MACD cross up indicates a potential strong buy momentum

3. Diminishing volume on pull back of Pennant
– Declining sell volume signals profit taking activities remain mild

Given all these positive signals, it was a high probability buy entry setup when DUFU is alerted on Wiz for potential trading opportunities.

Learn how Wiz caught DUFU when it was RM3.20-RM3.40 and the past commentaries

Besides today’s alerts, DUFU had been appeared on M+ Wiz and covered by us since early April. DUFU was even mentioned in our post Create An Edge for your trading that it had a high winning probability when it was trading at RM3.40-RM3.60. To review back why DUFU is featured and how the share is spotted, look back our post below:

1. incase you missed it M+ Wiz got DUFU today! on 7th April 2020

On 7th April 2020


2. The Power of Wiz: Stock Recap on 16th April 2020

On 16th April 2020


3. Create An Edge for your trading on 29th April 2020

On 29th April 2020

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