DAILY TRADING STOCKS: Berjaya Corp, KBB Resources

Berjaya Corp’s daily chart

Berjaya Corp’s share has to stay above the  support level to keep the  possibility of  a  rebound alive. There is no doubt the stock is trending lower. The broad market rebound since Sep 2011 has done nothing to  the stock’s  trend as  it continues to make a  series of lower highs. However, there is a possibility of a rebound if the stock can stay above the Dec low of RM0.915 but its failure to break the support level after multiple tests this week could be an early indication that buying is returning. The volume increase in the past few days also suggests buying support, but this is only confirmed if the stock closes above the 7-day high of RM0.94. A position can be initiated if this happens, with a stop loss on a close below RM0.915. The first target is RM1.00, with a successful violation confirming the change in trend. The next target  is the 7-month resistance  at RM1.07, but failure to hold the support level should see intensified selling, with a close below  the  Sep 2011 low of RM0.88 as confirmation. Support is expected at the late 2007 low of RM0.77.

KBB’s daily chart

KBB’s  share price  should trade higher after the  firmer close yesterday.  This stock, which has been  one of  the  market outperformers in the past six months,  is now  trading at  a  4-year high. The new  high printed yesterday ended the  stock’s  3-day correction, which saw it finding support at the psychological RM0.50, the high of 2011. The high volume breakout suggests that buying interest is intact. Thus, the upward trend is expected to continue and a purchase can  be made at the current price. A close below RM0.50 can be taken as stop loss,  while  a more aggressive trade may  be to  consider RM0.55 instead.  A Fibonacci extention based on the 2011 rally could see the stock hit RM0.66, the low of early 2008, while a stronger move may even see it test RM0.80, the high of late 2007.  A  trade may not work out should RM0.50  be violated, after which a correction to the 6-month rally is expected. Supports should come at the prior important level of RM0.425 and thereafter RM0.32, the high of Oct/Nov 2011.

Source: OSK188